"A rebound in equity markets would help Brent to rebound from $80", said Olivier Jakob, analyst at Petromatrix, adding that a dip below $80 on Thursday did not clearly break that level as a source of technical support.
Iran's crude oil exports dropped down to 1.1 Million bpd (barrels per day) during the start of October, falling down from 1.6 Million bpd in September since the US sanctions on Iran's oil is just a few weeks away.
"There will be some Iranian exports but the amount will depend on the price".
BP is reportedly planning on a cycle of oil prices at $60 to $65 per barrel: "We've been through this period of really low prices and they're up again and we can't plan on these high prices right now", Dudley explained. Late last week, the United States hinted that it was at least considering waivers. U.S. President Donald Trump has repeatedly demanded the Organization of Petroleum Exporting Countries pump more to temper prices.
Oil prices dropped 2 per cent on Wednesday as US equity markets broadly fell, even though energy traders anxious about shrinking supply from Iran due to US sanctions and also kept an eye on Hurricane Michael, which closed almost 40 percent of US Gulf of Mexico oil output.
Iranian oil industry has been under pressure from the USA efforts to isolate the country by reimposing sanctions. But the actual volumes imported may be far less as private sector companies like Reliance Industries Limited (RIL) have totally stopped purchasing oil from Iran and Nayara Energy, formerly Essar Oil, too has chose to stop oil import from the Persian Gulf nation.
"We have to continue to assess to see how and when we will achieve the 100% conformity and how the market would respond, hoping that some of these non-fundamental factors will evaporate by then", he said.
But figures OPEC compiles from secondary sources that include oil-industry media and government agencies put output in August at 3.58 million bpd, down 150,000 bpd from July. Refiners in the country have placed orders to buy 9 million barrels from Iran in November.
Iran has been selling crude at just over one million barrels a day for the past few years, mostly to China, India, Japan and South Korea.
In January-September, India's oil imports from Iran rose by 21 percent to 592,000 bpd, the data showed. Our outlook on crude oil remains bullish. However, those sanctions on Iran were lifted in 2016. In fact, Saudi Arabia said they are not aware of any refiner that needed oil and was not able to obtain it.
Crude oil prices are up today. However, oil market basics do not point out that this demand is apparent. Some market experts say India is willing to keep buying oil from Iran because Tehran offers some discounts and incentives.
U.S. stocks markets skidded, on track for the biggest daily decline since April, and the sell-off intensified as the day wore on as rising U.S. Treasury yields and trade policy related worries sent investors fleeing for safety.