"While Saudi Arabia is under pressure from Trump to keep oil prices low, it probably won't like them to be too low at the same time", said Hong Sungki, a commodities trader at NH Investment & Securities Co.in Seoul.
Saudi Arabia's governor to the Organization of the Petroleum Exporting Countries (OPEC) says the kingdom's oil export will be little changed this month, dealing a setback to US President Donald Trump who had pinned hopes on Saudis to reduce oil prices in global markets.
By Navneet DamaniOil prices traded weak - with a second weekly decline - as market weighed concerns over resurgent Libyan supply, the trade dispute between the U.S. and China and the extent of potential sanctions on Iran. Yet, the comeback in prices was mainly due to extremely strong gasoline and distillate demand plus reports of an unscheduled teleconference meeting with "The Joint Ministerial Monitoring Committee" (JMMC) that was set up with OPEC and Non-OPEC Russia to make sure that there was strong compliance to their oil production cut agreement.
Regulatory certainty for USA oil development is essential to the oil industry's continued success. This new mechanism for pricing oil remains outside the dollar's institutions, and so not so exposed to USA pressure.
"The correction in the oil price represents something of a convergence between fundamentals and physical realities", David Reid, lead crude market analyst at consultancy JBC Energy, told Reuters. China, for instance, has emerged as a major buyer of United States oil.
The benchmarks had steadied after big declines on Monday and last week as supply disruptions in Venezuela came to the fore and as analysts had been forecasting a decline of 3.5 million barrels in US inventories for the week through July 13.
The deputy chairman of Iran's Chamber of Commerce, Industries, Mines, and Agriculture, Pedram Soltani, said on July 17 that exchanging oil for goods could be one way of getting around the USA sanctions re-imposed after the United States pulled out of the nuclear deal in May. India, the world's fastest growing oil user, could bridge the surplus by up to $4 billion through oil imports alone, government officials said in April.
A Reuters survey of Opec production showed Saudi output at a near record, up 700,000 bpd at 10.70 million bpd.
The news comes as the United States aims to position itself as an global oil and gas provider.
US crude oil production last week hit 11 million barrels per day (bpd) for the first time in the nation's history, the EIA said.
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading lower early Thursday after failing to follow-through to the upside following yesterday's almost one-percent gains and technical closing price reversal bottoms.
Total products supplied over the last four-week period averaged 20.7 million barrels per day, down by 0.3 percent from the same period a year ago.
Petrol inventories fell by 3.2-million barrels last week, while distillate stockpiles, which include diesel and heating oil, dropped by 371,000 barrels, the Energy Information Administration said on Wednesday. Over the past four weeks, motor gasoline product supplied averaged 9.6 million barrels per day, down by 0.1 percent from a year ago.