Oil prices fall on record US output, stock build

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India, vulnerable to USA pressure, has said it would only buy Iranian oil if it is able to get a waiver against sanctions from the U.S. government.

In an a rare development, Germany has called USA pressure exerted on its allies to comply with sanctions on Iran "irritating, to put it mildly" and expressed hope that India will continue buying oil from Iran. However, gains were likely limited by the larger-than-expected build in crude inventories and more importantly, the jump in USA production to a record 11 million bpd. "Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference.Prices to high!" Russian Federation was also studying all legal implications for a possible deal with Iran under which Moscow would provide goods to Tehran in exchange for oil. As reported by Japan's premier business newspaper, Nikkei, Japan aims to completely stop oil imports from Iran by October. Oil rises as supply threats overshadow demand-killing trade war. Iran's 2016 oil and condensate revenue reached $41 billion.

USA crude oil imports averaged 9.1 million barrels per day last week, up by 1,635,000 barrels per day from the previous week. The country's oil revenues also grew from $27.308 trillion in 2015 to $41.123 trillion in 2017.

Data from Energy Information Administration on Wednesday showed a larger than expected 5.8 million barrels jump in United States crude inventories in the week ended July 13.

Such a tactic was employed during Mahmud Ahmadinejad's presidency, when Iran struggled with global sanctions.

For its part, South Korea announced that they will end Iranian crude imports by the end of July, halting all shipments. Saudi Arabia also cut last week its official selling prices (OSPs) by US$0.20 for most of its grades to the Asian markets for August.

But there are limitations to how much India can buy from the U.S.at the moment. U.S. crude stocks rose by 5.8 million barrels last week, compared with a forecast for a decline of 3.6 million barrels.

News Wednesday of strong USA demand for gasoline and distillates gave the price only a brief boost.

The news comes as the United States aims to position itself as an worldwide oil and gas provider. With China showing little signs of arresting its currency's depreciation, the yuan promptly retreated to a near 13-month low.

Strategic Petroleum Reserve. After the Oil Weapon had been unsheathed by the oil-producing countries in 1973, the United States government began to hold a Strategic Petroleum Reserve.

Speculation about a possible supply shortage contributed to oil's recovery. Take, for instance, the surge in USA shale-oil production due to the innovative use of hydraulic fracturing combined with horizontal drilling, which has been a big upshot for US oil production.

A Reuters survey of Opec production showed Saudi output at a near record, up 700,000 bpd at 10.70 million bpd.