Oil trades below $70 as US-Saudi tensions grow

Oil edges higher amid tension over death of Saudi journalist

Oil edges higher amid tension over death of Saudi journalist

Earlier, Brent fell below US$79 per barrel the day after a US Energy Department report showed oil producers had put 22 million barrels in storage tanks over the past four weeks.

Brent crude, on the other hand, slumped to $1.31, or 1.6 percent, at $80.10 a barrel by mid-afternoon of Wednesday, barely registering gains of $1.15 per barrel from the previous three sessions.

Both countries earlier this month said they had completely suspended their purchases of Iranian crude ahead of the USA sanctions, which will enter into effect on November 5.

Futures fell as much as 1.6% in NY to the lowest since September 18.

us crude inventories rose 6.49 million barrels last week, the Energy Information Administration reported, more than twice the rate forecast in a Bloomberg survey before the data was released.

"Many European companies are leaving Iran, but [South] Korean firms have declared they will stay in Iran", he said, adding that Korean companies understand how important it is to be present in the Iranian market. USA crude was down 77 cents at $68.98. USA sanctions on Iranian oil exports are due to kick in on November 4.

On Friday, front-month USA crude futures traded at the biggest discount to the second month in almost a year.

"We're seeing some buying come back in", said Phil Flynn, an oil market analyst at Price Futures Group in Chicago.

Wet and mild: Warm winter predicted for much of the U.S.
It also said that wetter-than-average conditions are likely across the southern part of the USA , and up into the Mid-Atlantic. A mild winter could be in store for much of the United States, according to the seasonal forecast released Thursday by NOAA .

Oil prices nudged higher on Friday on signs of surging demand in China, the world's second-biggest oil user, though prices are set to fall for a second week amid concerns of the ongoing Sino-US trade war is limiting overall economic activity.

Western pressure mounted on Riyadh to provide answers, but comments by President Donald Trump suggested that White House may not take additional actions against the Saudis, specifically after Saudi Arabia said it will conduct a probe.

There have been some indications that implied India totally halting the import of Iranian crude oil.

On May 8, President Trump pulled the USA out of a 2015 nuclear pact with Iran reached by his predecessor Barack Obama and other world powers, the U.K., France, China, Russia and Germany, and ordered tough US sanctions on Tehran.

NEW YORK, Oct 19 (Reuters) - Oil prices rose on Friday on signs of surging demand in China, the world's No. 2 oil consumer, although prices were headed for a second weekly decline on swelling us inventories and concern that trade wars were curbing economic activity.

Saudi Arabia has threatened to retaliate against potential sanctions from the United States over the disappearance of Washington Post journalist Jamal Khashoggi.

As the United States sanctions on Iran loom, the panic in the market over the loss of Iranian crude is increasing. Saudi Arabia denies that it had any role in Khashoggi's disappearance.

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