UPDATE 9-Oil mixed as China tariff talk scotches early rally

Reuters

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    * Oil on track for 1.6 pct weekly gain
    * Drillers add 2 oil rigs to 749 -Baker Hughes
    * Iran supply reductions loom

 (Updates with settlement prices and weekly gain)
    By Jessica Resnick-Ault
    NEW YORK, Sept 14 (Reuters) - Oil prices pulled back on
Friday on concerns additional U.S. tariffs would be placed on
Chinese imports, after an earlier rally triggered by worries
that more sanctions on Iran might constrict supply. 
    Crude futures ended the week up up more than 1.6 percent.
    Traders said an early rally on Friday was sparked by reports
U.S. Secretary of State Michael Pompeo was going to announce 
new sanctions on Iran. 
    "It increases the odds that there will be less oil coming
out of there," said Phil Flynn, an analyst at Price Futures
Group.
    The gains were curbed though by reports U.S. President
Donald Trump instructed aides to proceed with tariffs on about
$200 billion more of Chinese products.  urn:newsml:reuters.com:*:nL2N1W017T
    Brent crude oil futures  LCOc1  pulled back on the reports
of additional tariffs, dropping 9 cents a barrel to settle at
$78.09. The global benchmark fell 2.0 percent on Thursday after
rising on Wednesday to its highest since May 22 at $80.13. 
    U.S. West Texas Intermediate (WTI) futures  CLc1  settled up
40 cents at $68.99 a barrel after dropping 2.5 percent on
Thursday.
    After a volatile week, Brent was set for a 1.6 percent
weekly rise and WTI 1.8 percent.
    Brent reached a session high of $78.94 a barrel, as
speculators attempted to push the price above the $79.00 level. 
    Brent crude futures have reached a high around $80.00 a
barrel three times this year before pulling back. 
    "The price action of yesterday confirms $80.00 a barrel as a
strong resistance line in Brent," consultancy Petromatrix said
in a research note.
    "There has been a lot of speculative interest searching for
Brent above $80.00 a barrel on the back of the U.S. sanctions on
buyers of Iranian crude oil, but so far this year any buying of
Brent above $79.00 barrel did not have a long shelf life." 
    U.S. energy companies this week added oil rigs for a second
week in a row with crude prices trading near their highest since
the summer of 2015 as major oil producing countries extended a
global deal to limit supply.  urn:newsml:reuters.com:*:nL1N1NY1WG
    Drillers added two oil rigs in the week to Dec. 1, bringing
the total count up to 749, the highest since September, General
Electric Co's  GE.N  Baker Hughes energy services firm said in
its closely followed report on Friday.  RIG-OL-USA-BHI 
    The United States is renewing sanctions on Iran after
withdrawing from a nuclear deal forged in 2015 between Tehran
and world powers. 
    Washington re-imposed some of the financial sanctions from
Aug. 6, while those affecting Iran's petroleum sector will come
into force from Nov. 4.
    Refiners in India, traditionally major buyers of Iranian
crude, will cut their monthly loadings from Iran for September
and October by nearly half from earlier this year.  urn:newsml:reuters.com:*:nL3N1VY68M
    But Iran's OPEC Governor Hossein Kazempour Ardebili, said in
comments to Reuters that a "supply shortage" meant the United
States would not be able to meet its zero export target.
 urn:newsml:reuters.com:*:nL5N1W02SB



    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
U.S. oil may bounce to $68.95    Https://tmsnrt.rs/2p7wqf6
Brent oil may test resistance at $79.24    https://tmsnrt.rs/2CVII3X
U.S. oil production growth is stalling    https://reut.rs/2CPGl2p
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Additional eporting by Aaron Sheldrick in Tokyo and Shadia
Nasralla in London; Editing by Clive McKeef)
 ((Jessica.Resnick-Ault@thomsonreuters.com; 646-223-6052;))

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