The industry-funded American Petroleum Institute will release its weekly tally of inventories later on Tuesday. The reaction in the oil price to the latest shots in the US-China trade war has also been limited, suggesting the market's underlying strength remains intact.
Oil output cuts by the Organization of Petroleum Exporting Countries and allies including Russian Federation since January 2017 have reduced a glut of crude. "You impose sanctions on major producers, founders of OPEC, and yet you are asking them to reduce prices?!".
China's customs agency said on its website that Chinese tariffs on US goods, likely including crude oil supplies which have soared over the last two years, will take effect immediately after USA tariffs on China goods kick in.
Brent crude futures were at $77.89 per barrel at 0830 GMT, down 35 cents. It would far surpass the previous high of 10.72 bpd from November 2016.
Trump's plan is to get the Gulf countries to commit to increase output by over two million barrels per day to offset falling supplies elsewhere. Cutting prices can be seen as an indication that a country wants to supply more crude.
US President Donald Trump has tried to calm jittery oil markets by suggesting Saudi Arabia is willing to use up to 2 million barrels per day in spare capacity to meet any supply shortages arising from US sanctions on Iran, writes Nassir Shirkhani. This has made up for shortfalls in countries like Venezuela and the predicted losses in Iran. Weekend discussions with Saudi Arabia, the de facto leader of OPEC, led to pledges from Riyadh to ensure the market was stable given lingering concerns about supply deficits.
The sudden surge in production from Saudi has irked other members especially Iran, despite OPEC still meeting its reduction benchmark.
Soon after that deal was struck, Trump announced that he had done a separate deal with Saudi Arabia to increase production by "maybe up to 2,000,000 barrels". Stockpile data from the US Energy Information Administration is expected tomorrow after a delay due to the July 4 holiday.
In the global context, however, United States gas is already incredibly cheap.
"As we are all in agreement to depoliticise our efforts in the OPEC, we should not let others take politicized measures targeting OPEC's unity and independence". Trump is U.S. allies to end all purchases of Iranian oil by November 4. He added, "This must be a two way street".
Foreign ministers from the five remaining signatories of a nuclear deal between Tehran and world powers will meet Iranian officials in Vienna to discuss how to keep the accord alive after the USA withdrawal from the pact.
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