US Brent reaches $ 80 a barrel after the US crude draw

NEW YORK (Reuters) – Oil futures advanced on Wednesday, Brent reaching $ 80 a barrel after a larger-than-expected decline in US crude inventories, and US sanctions on Iran compound worries around the world. .

Bendmark Brent futures futures rose 47 cents to 79.53 dollars a barrel, at 12:49 pm. EDT (1649 GMT). The world benchmark reached $ 80.13 per barrel, its highest level since May 22.

The United States West Texas Intermediate (WTI) crude futures price rose 93 cents to $ 70.18 a barrel, a week-high high.

US crude inventories fell 5.3 million barrels last week, the US Energy Information Administration announced on Wednesday. Analysts were expecting a decrease of 805,000 barrels.

"A drop in crude oil stocks does not reassure us when you are going to lose a lot of Iranian crude in a few weeks," said Phil Flynn, an analyst at Price Futures Group.

Since the spring, when the Trump Administration said it would impose sanctions on Iran, traders have focused on the impact they could have on global supply. The sanctions will target Iranian oil exports from November.

"Iran is becoming more and more the concern of the crude market. The last two weeks have seen the expected tightening of Iranian crude oil flows, with significantly reduced capital outflows, "said consultant JBC Energy.

Russian Energy Minister Alexander Novak warned on Wednesday of the impact of US sanctions against Iran.

"This is a huge uncertainty in the market – how countries buying nearly 2 million barrels a day (b / d) of Iranian oil will act. The situation must be closely monitored, the right decisions must be made, "he said.

Novak said global oil markets were "fragile" because of geopolitical risks and supply disruptions, but added that his country could increase production if needed.

The Organization of the Petroleum Exporting Countries reduced its forecast of growth in oil demand in 2019 in its monthly report and said the rising challenges in some emerging and developing countries could have a negative impact on growth. world economy. [OPEC/M]

OPEC said it expects demand growth of 1.41 million barrels per day in 2019, down 20,000 barrels from previous forecasts.

Oil traders were also watching the progress of Category 4 Hurricane Florence, which is expected to hit the coast on Friday.

The massive production of crude oil will not be affected by the storm, but the evacuation of more than a million people, as well as businesses, has caused a peak in fuel demand in the short term. [nL2N1VY0BF]