Strength in Oil ETFs Won't Last if OPEC Has Any Say

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As supply cuts are reversed, OPEC's crude oil production in August (excluding Congo, which joined OPEC in June) rose to a 10-month high.

It is the first-time prices soared as high since 2014, when freezing winter weather across the USA drove up the demand for oil.

On the flip side, the bearish breakout of $68.45 can lead oil prices towards $67.45.

US President Trump said on Twitter on Thursday that the United States holds the upper hand in talks.

If recent supply disruptions in either African country are repeated, or the unrest in Iraq's second city spreads to nearby oil fields, the shortfall could easily rise above a million barrels a day.

Leave aside concerns about prospects for developing economies and the impact of Trump's trade wars that are darkening the outlook for oil demand.

October futures on West Texas Intermediate crude the USA benchmark, rose by 49 cents, or 0.7 per cent, to $69.08 a barrel on the New York Mercantile Exchange. The pace of drilling slowed after oil prices tumbled starting in 2014, but roared back as operators learned to produce oil more efficiently and crude prices rebounded.

Futures in NY increased as much as 0.5 percent, on course for a weekly gain of 1.6 percent.

Two tankers carrying Iranian condensate, a type of ultra-light oil, have been floating off the United Arab Emirates for about a month as demand for the oil fell ahead of USA sanctions.

"The price action of yesterday confirms $80.00 a barrel as a strong resistance line in Brent", consultancy Petromatrix said in a research note.

The United States is under the process of imposing new economic sanctions after the Trump administration made a decision to pull out of the nuclear deal with Iran.

Washington reimposed some of the financial sanctions from August 6, while those affecting Iran's petroleum sector will come into force from November 4.

Iran's Ardebili accused Saudi Arabia and Russian Federation of taking the market "hostage" through increased production and said that OPEC's responsibility is to restore market balance, not to boycott its founding members.

The International Energy Agency said Thursday that although the oil market was tightening at the moment and world oil demand would soon reach 100 million barrels per day (Mmbpd), global economic risks were mounting.

Following Chinese President Xi Jinping's call for a boost to national energy security amid trade tensions, the country's crude oil output rose in August for the first time in almost three years.