Futures were down 1 percent in New York, extending last week’s 3.9 percent drop. The two African producers, who were exempt from supply cuts because of internal strife but are now recovering, have been invited to a July 24 meeting in Russia to discuss whether their production has stabilized, Kuwait’s Oil Minister Issam Almarzooq said in Istanbul. BNP Paribas SA sharply reduced its price forecasts for this year and next because supply growth elsewhere is diluting the impact of the OPEC-led curbs. Oil in New York and London remains in a bear market amid concerns elevated global oil inventories and rising supply will offset curbs by the Organization of Petroleum Exporting Countries and its partners including Russia. Libya and Nigeria together added 440,000 barrels a day of production in May and June as fields restarted, according to data compiled by Bloomberg. It’s premature to talk about deepening output cuts, OPEC Secretary-General Mohammad Barkindo said in Istanbul. Click Read More below for more of the story.
Strong buying emerged in oil markets Tuesday as focus shifted to an expected decline in Iranian crude exports after a senior U.S. State Department official said countries must stop purchasing crude by the start of November or face sanctions.
Companies that buy Iranian crude oil must completely halt those exports by Nov. 4 or else they will face powerful U.S. sanctions, a senior State Department official told reporters on Tuesday.
Oil prices moved sharply higher as investor focus shifted to the prospect of a void in global supplies as Iran – OPEC’s third largest producer – exports more than 2 million barrels per day (bpd).
Renewed focus on upcoming sanctions against Iran, offset some earlier weakness in oil prices, which followed a report Saudi Arabia plans to hike crude output to record levels.
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