Indian buyers reduced US crude purchases and loaded up on Iranian oil ahead of the restart of USA sanctions next month and as the WTI-Brent differential narrowed, according to traders and shipping intelligence firm Kpler. The next round of sanctions, targeting Iran's oil exports, will come into effect in early November.
Asked about whether Russian Federation and Saudi Arabia would raise production to ease concerns about supply and cool oil prices, Novak said that Russian Federation has already reversed all 300,000 bpd of the cuts it had pledged in the OPEC+ deal and added another 100,000-bpd production in September. Accordingly, during the January to August period of this year, Korea's imports of US crude oil rose more than five-fold to 26.87 million barrels from a year before.
In the week ended September 21, crude stockpiles had increased by 1.9 million barrels, after five consecutive weeks of declines.
That might not be enough to outweigh supply concerns but the scope for further strong price gains near-term seems limited.
On the other hand, according to the report, it will not be possible for the Organization of Petroleum Exporting Countries (OPEC) to compensate for the supply gap that will occur after the sanctions are levied against Iran.
There was no immediate reaction in Saudi Arabia to Mr. Trump's remarks.
Saudi Arabia is juggling intense pressure from U.S. President Donald Trump to boost output and ease high prices.
The first round of US sanctions targeting the automotive sector and financial transactions were reinstated on August 6, and the second round that will hit Iran's oil and natural gas trade starts on November 4.
"They're taking a pause after yesterday's sell-off", said Andrew Lipow, president of Lipow Oil Associates.
This particularly concerns India, as it sources almost 10% of its oil imports from Iran and benefits from incentives like extended credit terms and low freight rates.
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"We protect Saudi Arabia would you say they're rich?"
"That oil prices are rising to elevated levels at the same time as emerging market currencies hit record lows will be a flashing signal to OPEC members that demand may be at risk of a sharp correction", said Emirates NBD bank.
"This is created in financial markets", he said.
Asked about surging oil prices, Falih said the current price "was not based on fiscal flows of supply and demand".