Last month, in its August STEO, the EIA predicted that ethanol production would average 1.04 million barrels per day in both 2018 and 2019. With that accomplished, OPEC has loosened the requirements on production.
Tehran faces the loss of the majority of its export markets for energy as Washington prepares to place sanctions on its sale of oil beginning November 4 after it pulled out of the nuclear deal with Iran last May.
NEW YORK, Sept 12 (Reuters) - Oil futures climbed on Wednesday, with Brent reaching $80 a barrel, after a larger-than-expected drop in USA crude inventories and as US sanctions on Iran added to concerns over global oil supply. Still, Opec warned on Wednesday that escalating trade tensions and a crisis in emerging markets could hurt oil demand, keeping investors guessing what path the group may take.
Dawn reports further that while answering a question on whether US restrictions on trade with Iran were discussed at the US-India talks, she said that there was a discussion in general over the sanctions and on Trump administration's goal to hold Iran accountable for its alleged 'maligned behaviour'. "But traders are now pivoting to the Opec and non-members' meeting next week in Algeria".
Light, sweet crude for October delivery dropped $1.78, or 2.5%, to $68.59 a barrel on the New York Mercantile Exchange, its worst day since August 15 after it closed at its highest level since July 20 a session earlier. The contract climbed $1.12 to $70.37 on Wednesday. Total volume traded was about 34% below the 100-day average. Brent touched $80 for the first time since May during Wednesday's session. The global benchmark crude's premium to WTI for the same month was at $10.02.
Iran has the world's fourth-largest reserves, and many countries - particularly in Asia - rely on its supplies and have refineries designed for its particular flavour of heavy crude. Russian Energy Minister Alexander Novak said the nation has the capacity to set a new oil-production record, but it will discuss supplies with the group because it's in everyone's interest to keep the market balanced.
"This is a huge uncertainty on the market â how countries, which buy nearly 2 million barrels per day (bpd) of Iranian oil, will act". Iran, Opec's third-largest member, is feeling the effect of the sanctions.
Europe continues to be the second-largest recipient of USA crude oil exports, receiving 555,000 b/d. USA shale, while signs of a production slowdown have yet to really materialize in the production data from the EIA, is still running into a rough patch.
Hurricane Florence is expected to make landfall today with wind speeds up to 110mph as it barrells towards the USA east coast. Duke Energy Corp. warned of power loss in North and SC, with the hurricane posing a threat to some pipelines running through the region.