Oil prices rose on Friday even as the start of U.S. President Donald Trump's tariff hike on $200 billion of Chinese goods kept tensions high in the trade dispute between the world's two biggest economies. Prices were supported by tighter supply amid continuing production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and U.S. sanctions on Iran and Venezuela. Growing trade between the world's two largest oil consumers could affect oil demand. The two countries together accounted for 34% of global oil consumption in the first quarter of 2019, data from the International Energy Agency shows. Click Read More below for additional information.
Oil prices steadied on Thursday but the market remained bullish after news of another fall in U.S. crude inventories and on signs that OPEC may not raise production enough to compensate for the loss of Iranian exports hit by U.S. sanctions.
Reuters reported two weeks ago that Saudi Arabia wanted oil to stay between $70 and $80 a barrel for now, seeking a balance between maximizing revenue and keeping a lid on prices until U.S. congressional elections.
U.S. crude oil stockpiles fell for a fifth straight week to 3-1/2 year lows in the week to Sept. 14, while gasoline inventories also showed a larger than expected draw on unseasonably strong demand, the Energy Information Administration said on Wednesday.
more detail at source: https://www.reuters.com/article/us-global-oil/oil-rises-on-u-s-crude-stock-draw-supply-concerns-idUSKCN1M002N