Oil traded below $70 a barrel as investors assessed whether other Organization of the Petroleum Exporting Countries (Opec) members can fill the supply gap created by USA sanctions on Iran and economic collapse in Venezuela.
The storm is expected to make landfall on the U.S. East Coast on Friday.
"While Iranian exports have fallen by almost 500,000 barrels per day since May, shipments from Iraq and Saudi Arabia have risen by 200,000 barrels per day and 60,000 barrels per day respectively", the IEA added.
Crude futures soared to $80 per barrel in midweek for the first time since May, extending a rally fuelled by tightening global supplies and lingering worries about impending United States sanctions on key Opec producer Iran.
West Texas Intermediate for October delivery traded at $67.87/bbl on the New York Mercantile Exchange, up $0.33 in London.
"We are entering a very crucial period for the oil market", the IEA said in its latest monthly report.
According to Oil Price, US Secretary of State Mike Pompeo has said that the US would consider waivers "where appropriate", but reiterated that the country expects to have Iranian oil exports to "zero".
The sanctions on Iran have started forcing buyers to forego imports from the Islamic republic before a 4 November deadline.
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.
USA crude oil production C-OUT-T-EIA fell by 100,000 bpd, to 10.9 million bpd, as the industry faces pipeline capacity constraints.
S&P global Platts said OPEC, in a report, indicated demand for the organization's own crude oil in September will be nearly 1 million bpd more than the level produced in August.
Russian Energy Minister Alexander Novak said on Tuesday that Russia and a group of producers around the Middle East which dominate the Organization of the Petroleum Exporting Countries may sign a new long-term cooperation deal at the beginning of December, the TASS news agency reported.
"Saudi Arabia, OPEC's largest producer, saw its output rise modestly to 10.40 million bpd, up 38,000 bpd from the previous month, according to secondary sources, S&P Platts reported". Iranian oil exports should go from about 2.7 million bpd-2.8 million bpd from earlier this year to about 1 million bpd-1.2 million bpd by the end of this year, Sen told CNBC earlier this month. The lower production forecast is only partially offset by lower forecast oil demand for next year.
In a factsheet about the new sanctions on Iran's oil, the U.S. Treasury says that the scope of "petroleum products" includes-as defined by the U.S. EIA-"unfinished oils, liquefied petroleum gases, pentanes plus, aviation gasoline, motor gasoline, naphtha-type jet fuel, kerosene-type jet fuel, kerosene, distillate fuel oil, residual fuel oil, petrochemical feedstocks, special naphthas, lubricants, waxes, petroleum coke, asphalt, road oil, still gas, and miscellaneous products obtained from the processing of crude oil (including lease condensate), natural gas, and other hydrocarbon compounds".
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