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Oil pushes past $80 as Iran fears mount

Oil pushes past $80 as Iran fears mount

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $69.84 per barrel at 0428 GMT, up 59 cents, or 0.9 percent, from their last settlement.

The 15-nation cartel's individuals agreed to originate up raising output starting in July this year to stabilize markets and offset losses in most important suppliers Iran and Venezuela, OPEC's third and sixth-greatest producers, respectively.

In other news. August saw OPEC's crude supply hit a nine-month high of 32.63 million bpd, despite concerns over falling production and slashed access in major producers Venezuela and Iran.

Over the past few months, surging oil prices and the weakening Indian currency have already created a ideal storm for India, where oil demand growth has been rising, but the higher oil prices are increasing the country's expenditure on crude oil imports, which account for 80 per cent of Indian oil consumption. He said it's adding a $5 to $6 premium to the price of crude oil.

Iraq replaced Saudi Arabia in August as the top oil supplier to India, the data showed, as refiners turned to Iraqi barrels to compensate for a lower intake of Iranian oil ahead of the U.S. sanctions in November.

Russian Energy Minister Alexander Novak said US trade measures against China are also contributing to the instability in the Global oil market.

OPEC member states joined other countries by cutting oil production almost two years ago in an effort to push prices back up.

It expects demand growth of 1.41 million barrels a day in 2019, revising downwards previous projections by 20,000 bpd. The sanctions will target Iran's oil exports from November.

"We think oil market fundamentals are increasingly supportive of crude prices, at least at current levels", said Gordon Gray, HSBC's global head of oil and gas equity research. Eyes will be on Iranian oil import data from China and India who typically import around 500-700k barrels.

"There remains a lot of noise in this week's markets, but the confluence of bullish near-term signals, such as Iran sanctions, sinking USA crude inventories and Mideast tensions should keep oil prices supported for the remainder of the week", according to Stephen Innes, head of trading for Asia Pacific at Oanda Corp.

Russian Energy Minister Alexander Novak on Wednesday warned of the impact of the USA sanctions against Iran.

"Things are tightening up", the agency said in its monthly report, but added: "As we move into 2019, a possible risk to our forecast lies in some key emerging economies, partly due to currency depreciations versus the USA dollar raising the cost of imported energy". Iranian oil exports should go from about 2.7 million bpd-2.8 million bpd from earlier this year to about 1 million bpd-1.2 million bpd by the end of this year, Sen told CNBC earlier this month.

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