Oil; Iran and Saudi Arabia worry about growth in supply in the United States

NEW YORK (Reuters) – Oil prices rose in a cautious trade on Tuesday, as rising production and shale inventories in the United States were worrisome as crude supplies from the Middle East could be disrupted by oil prices. Imposition of US sanctions against Iran and increasing tensions with the main Saudi Saudi exporter.

US Senator Lindsey Graham accused Saudi Crown Prince Mohammed bin Salman of ordering the assassination of Saudi journalist Jamal Khashoggi and said that the latter was jeopardizing his relations with the United States.

US President Donald Trump has stated that the Saudi Crown Prince intended to broaden his investigation into Khashoggi's disappearance and that he did not know what had happened in the Turkish Consulate. , where the latter apparently disappeared.

"The focus in the oil trade over the next two weeks will likely be devoted to Iran and Saudi Arabia," said Jim Ritterbusch, president of Ritterbusch and Associates, in a note. .

"We do not expect the Kingdom to be as accommodating to the White House's demand for more production," he said, adding that the Saudis could cut production by 500,000 barrels a day. , he said, imposing any type of sanction in response to Khashoggi's developments. "

Trump urged the Organization of the Petroleum Exporting Countries to increase production to cover a deficit due to the new sanctions imposed on Iran by the United States. The market was supported by reports that Iranian crude exports may fall faster than expected before the November 4 deadline for sanctions.

Brent rose 63 cents, or 0.8%, to $ 81.41 a barrel, while West Texas Intermediate crude (WTI) closed the session up 14 cents to 71, $ 92 a barrel.

Last week, oil prices fell as the global stock market tumbled, but the recovery in financial markets, boosted by earnings growth, helped fuel oil prices on Tuesday, traders said. [.N]

Prices rose in post-settlement trading after data from the American Petroleum Institute (API) revealed an unexpected decline in US crude inventories. Inventories fell by 2.1 million barrels last week, while forecasts forecast construction of 2.2 million barrels. [API/S]

Inventories at WTI's Cushing, Oklahoma delivery center increased by 1.5 million barrels, according to API, the fourth consecutive week of growth, if confirmed by official data expected at 10:30 am EDT (14:30 GMT) Wednesday. [EIA/S]

Low gasoline margins in the United States and shale growth in the United States could also limit gains on crude prices, market participants said.

"The weakening of crude oil is spreading almost worldwide in the face of sanctions imposed by Iran, which will probably raise concerns about the strength of the market and its desire to recover more," said Scott Shelton, futures broker. on energy at ICAP in Durham, North Carolina.

Brent futures futures in the month before traded at the lowest premium in more than a month, but deliveries were due in one year. At the same time, futures on the US crude from the previous month traded near the smallest premium in the 12th month in about 10 months.

"We believe that one of the main factors leading to a reduction in long positions is a revaluation of short-term fundamentals by investors," Standard Chartered analysts said in a note.

Any supply shortfall in the fourth quarter should not be large enough to do more than support prices, they said.