International oil prices hit a new high of more than three weeks, supported by four positive factors, but there are hidden worries on the demand side

On Thursday (August 25), international oil prices hit a more than three-week high, as supply tensions heightened as supply fears intensified
as major producers cut production, the Iranian nuclear deal restarted the process without smoothness, Russian exports disrupted and U.
S.
refineries partially shut down.
Although U.
S.
gasoline demand was tepid, limiting gains
.

At 16:20 Beijing time, NYMEX crude oil futures rose 0.
23% to $95.
11 / barrel; ICE Brent crude futures rose 0.
41% to $100.
76/bbl
.

Saudi Arabia's energy minister has previously said that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will defend prices
by cutting production if necessary.
Negotiations aimed at resuming Iran's nuclear program remain stalled, and any expectations of Iran's crude oil returning to international markets have been called into question
.

Negotiations between the European Union, the United States and Iran to resume the 2015 nuclear deal continue
.
Iran's Foreign Ministry said on Wednesday it had received a U.
S.
response to the EU's "final" text, but did not specify exactly how much of the remaining gap
they had narrowed.

ANZ analysts Daniel Hynes and Soni Kumari said a deal could weigh on market sentiment and lower prices in the short term as the deal boosts the outlook for
a recovery in Iranian oil exports by 1 million barrels per day.
"Still, the move will not offset the tension
caused by the decline in supply in Russia.
"

In August, Russia's fuel oil exports to the Netherlands and Estonia fell to zero
from 365,000 tons and 170,000 tonnes in July, according to Reinte data.
The European Union has been reducing imports of Russian petroleum products since March and has agreed to a total ban on imports
from February 2023.

In the United States, the world's largest oil consumer, BP reported shutting down some of its units
at its Whiting refinery in Indiana after an electrical fire erupted on Wednesday (Aug.
24).
The 430,000 barrel-per-day plant is a major fuel supplier
to the city of Central America and Chicago.

The company said in an email response that the fire had been extinguished, no one was injured, and that the impact was known outside the plant and was in the process of determining when the affected units would be restarted
.
Local media earlier reported that part of BP's Whiting refinery was shut down
due to an electrical fire.

The decline in U.
S.
crude oil and product inventories has also increased upward pressure
on prices.
The U.
S.
Energy Information Administration (EIA) said oil inventories fell 3.
282 million barrels to 421.
7 million barrels in the week ended Aug.
19, a drop far more than expected by 933,000 barrels
.

But gasoline inventories fell by 27,000 barrels, a fall far less than expected at 1.
464 million barrels, reflecting tepid demand and offsetting the bullish impact
.
Analysts are concerned about weak fuel demand, saying it signals a significant slowdown
in economic activity.

Andrew Lipow, president of Lipow Oil Associates, said: "While crude inventories are particularly bullish, a plunge in gasoline demand can weigh on the market
.
For me, this is the most noteworthy item
in the statistics.
”