Oil slides after China announces tariff on USA crude

Crude Oil Supply

However, the USA has asked all nations to stop their oil imports from Iran by November 2018 as Trump vouches to bring Iran's oil sales to zero. The Turkish lira fell to a new record low against the dollar amid a dispute with the US government, while the Russian ruble also dropped after USA sanctions on the country over its alleged involvement in poisonings in Britain.

While it's true that China's crude oil imports recovered slightly in July, it was still among the lowest so far this year due to a decline in demand from smaller so-called independent "teapot" refineries.

West Texas Intermediate crude for September delivery traded at $69.11 a barrel on the New York Mercantile Exchange, down six cents, at 7:55 a.m.in London.

The crude futures that China launched in March with ambitions to rival US and European benchmarks seem to be dancing to an oil-market tune only they can hear.

With China, India and Turkey already on board to continue Iranian oil imports, Japan also says it is considering continuing shipments amid warnings that new United States sanctions on Tehran could push prices above $90 a barrel.

Under the arrangement, Iran's oil payments were deposited into accounts in oil-importing countries and used by Tehran to buy goods.

Syncrude Canada's nameplate capacity stands for roughly 10 percent of the Canadian crude oil supply.

Oil inched up on Thursday, paring some of the previous day's steep price slide, after the first round of U.S. sanctions against Iran came into effect, although confidence in crude demand has been hit by the escalating China-U.S. trade dispute.

In the previous US crude sanctions against Iran, about half of its oil exports of 2.4 million barrels were removed from the market.

"The ability of gasoline to hang in there despite strong demand weighed on the market", said John Kilduff, a partner at Again Capital Management in NY. The country exported nearly 3 million barrels per day (bpd) of crude in July.

At 1500 GMT, October ICE Brent was trading $1.81 lower at $72.84/b, while September NYMEX crude was down $1.87 at $67.30/b.

Iranian oil exports fell to their lowest in four months in July, S&P Global Platts estimates, as key buyers have started to curtail their purchases as the first set of USA sanctions on Iran kick in. Saudi Arabia was thought to pump about 10.8 mmbbl or 11 mmbbl per day, said the source.

Tuesday evening the American Petroleum Institute (API) reported that crude inventories dropped by 6 million barrels in the week ending August 3.

In the U.S., nationwide crude stockpiles dropped 1.35 million barrels last week, according to the EIA, while supplies stored in the key hub of Cushing, Oklahoma, slid for a twelfth straight week, declining by 590,000 barrels.

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