"Crude oil export losses from Iran due to USA sanctions, production decline in Venezuela and episodic outages in Libya are unlikely to be offset entirely by corresponding rises in Opec+ production", Tchilinguirian said, referring the Organisation of the Petroleum Exporting Countries and countries including Russian Federation that reached a deal to curb output to counter low prices.
As reported by Reuters, crude oil prices "could reach $80 and higher in the short term", according to Britain's Barclays bank.
"Exports from OPEC's third-biggest producer are falling faster than expected and worse is to come ahead of a looming second wave of US sanctions", said Stephen Brennock, analyst at London brokerage PVM Oil Associates. He also stated that the Iranian production is already giving indications of declining. This increasing production would help allay fears of a tightening global market and reduce the bullishness in markets. The high rig count has helped lift US crude production C-OUT-T-EIA by more than 30 percent since mid-2016 to 11 million bpd. This was the highest production has gone to for this year. Output was boosted by a recovery in Libyan production and as Iraq´s southern exports hit a record.
For the first time in 3 weeks, 2 new oil rigs were added to United States oil production operations, taking the count of active oil rigs to 862.
Libya produced the highest quota of the output pumping as much as 970,000 barrels a day last month compared to 660,000 barrels a day in July, a Bloomberg News survey of analysts, oil companies and ship-tracking data said.
The ongoing trade wars between the USA and some of the world's biggest economies, including the European Union and China, could hurt the demand for oil if they aren't settled soon.
"We do not expect oil demand to be materially impacted in the next 6-9 months by economic uncertainty linked to US/China trade tensions and recent concerns over emerging markets", said Harry Tchilinguirian, senior oil strategist at BNP Paribas.
Thanks to this ever escalating trade war, China's manufacturing growth was at its slowest in more than one year this August.
"As US allies, and under significant pressure from the US administration, they are all likely to cut down (if granted waivers by the US, which is unlikely with the hawkish US stance towards Iran) or completely halt their crude imports from Iran after November".
"It isn't at all clear that such type of economic headwinds will topple oil prices given ... the constant barrage of supply outages", Innes said.