Crude prices remain volatile on mixed developments

Crude prices remain volatile on mixed developments

The sources declined to be identified as they were not authorised to speak to the media.

The US is facing severe sanctions on Iran.

"Saudi Arabia's effort to ramp up production seems to be only enough to mitigate the effect of lower supply from Iran and Venezuela, but not fully replace it", said Jens Naervig Pedersen, senior analyst at Danske Bank A/S in Copenhagen. Speculators have built bullish long positions on hopes of further price rise.

Iran's exports will fall to 1.1 million b/d in October, Platts Analytics projects.

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Meanwhile, the US State Department issued a statement on Wednesday asking Opec to boost production by tapping the supply buffer it maintains in case of unexpected disruptions.

The Iranian vice-president for legal affairs has called on the Health Ministry and other governmental bodies to provide the International Court of Justice (ICJ) with cases of the US violation of the ICJ's decision on Tehran-Washington dispute.

As exports have fallen, domestic refinery runs have increased sharply.

While concerns about $100 a barrel oil have run rampant recently, Barclays takes a different approach in its latest prediction.

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The increased production also failed this week to prevent premium crude prices from hitting a four-year high above $86 a barrel in London trading. If Saudi Arabia and Russian Federation make up for the losses from Iran after sanctions, prices would remain within a range. This led some analysts to suggest that the details of the deal were intentionally leaked in order to keep the price of oil from continuing to climb ahead of the November 4 deadline. Two months later, Iran asked the court to demand the US lift sanctions against it.

The Saudi prince claimed in the Bloomberg interview that the kingdom could push its capacity beyond 12 million barrels a day with additional investment, and that extra supplies are also available from its allies in the Persian Gulf region.

The US officials were least moved, however, with President Donald Trump's National Security Advisor (NSA) John Bolton revealing that the US would give up the "optional protocol" under the Vienna Convention on Diplomatic Relations - a 1961 global treaty that outlines diplomatic ties between nations.

Iran's crude exports to China also increased by 29,000 bpd to 620,000 bpd, according to Kpler, as China cut its U.S. purchases amid an ongoing trade spat with the United States.

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Moral of the story: Every nation for itself.

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