Oil rises ahead of renewed United States sanctions against Iran

10 August, 2018, 03:39 | Author: Salvatore Jensen
  • Saudi Arabia Reduced Oil Production in July

Before the EIA report, benchmark West Texas Intermediate (WTI) crude for September delivery traded down about 2% at around $68.00 a barrel and dropped further to around $67.57 (down about 2.3%) shortly after the report's release.

On top of that, Iranian President Hassan Rouhani has threatened to disrupt regional oil production and exports if the Trump administration follows through with oil sanctions.

The tension between USA and China however, may partially blunt the effect of Iran sanctions on India's oil sourcing.

The weakness was pronounced at China's independent oil refineries, known as teapots, which the market views as an indicator of real demand for the world's second biggest oil consumer, Kilduff said.

West Texas Intermediate, the United States benchmark, shed 2% to $67.70 per barrel after the Ministry of Commerce released a new list of American goods that will be subject to tariffs.

"We think India will continue to buy U.S. oil given the strength in USA production and the Indian market can emerge as a reliable buyer of United States oil", said Sri Paravaikkarasu, head of East of Suez Oil at consultancy FGE.

One of Iran's biggest oil customers is buying more US crude.

The crude futures that China launched in March with ambitions to rival US and European benchmarks seem to be dancing to an oil-market tune only they can hear.

Prices drew some support from US sanctions against Iran, introduced Tuesday in a range of sectors. The US government has said it wants as many countries as possible to stop buying Iranian oil.




USA crude oil supplies dropped by around 1.35 mbpd last week.

The oil shipments into the world's biggest importer of crude came in at 36.02 million tons last month, or almost 8.48 million barrels per day, higher from 8.18 million barrels per day a year ago, and just over June's 8.36 million barrels per day, according to the data from the General Administration of Customs.

Iran's oil exports dropped by 7 percent to 2.32 million bpd in July-their lowest level in four months-as South Korea and Europe are slashing imports ahead of the return of the US sanctions on Tehran, data from S&P Global Platts showed on Tuesday. Crude oil will be exempt.

"Past instances of El Nino have resulted in sharp drops in U.S. residential and commercial heating oil demand and prices", it said.

Some analysts said that global crude supply losses could range from 600,000 to 1.5 million barrels per day due to the re-imposition of USA sanctions on Iran.

Prices of the barrel of the American reference for the sweet light crude oil are falling further today, breaking below the $68.00 mark per barrel.

Markets were still supported by the introduction of new US sanctions against Iran on Tuesday, which initially target Iran's purchases of USA dollars - in which oil is traded - metals trading, coal, industrial software and its auto sector. The average North Sea Brent mix at the Intercontinental Exchange (ICE) in London reached US$74.95 per barrel, down by US$0.99 only compared with previous month's trading.

Market analysts warned that oil prices could surpass $90 if Iranian supplies of around 2.4 million barrels per day (bpd) are disrupted.

Recommended:

  • Nail salon brawl caught on video sparks protests in Brooklyn

    Nail salon brawl caught on video sparks protests in Brooklyn

    Surveillance video released by the Chinese American Nail Association shows the verbal argument escalating into a physical fight. Zhing was hospitalized with visible injuries to her face and body, and Thomas refused medical attention, according to police.
    5 killed, 44 wounded in night of gun violence in Chicago

    5 killed, 44 wounded in night of gun violence in Chicago

    But with the violent weekend becoming a national issue, Johnson never even touched on what development had been achieved. Of the wounded who gave their age, the oldest was 62 and the youngest 11, according to police records.
    Magnitude 7.0 Earthquake Rocks Indonesia's Lombok, Bali Islands

    Magnitude 7.0 Earthquake Rocks Indonesia's Lombok, Bali Islands

    Indonesia is an archipelago of thousands of islands, which sit on the Pacific Ring of Fire , a seismic activity hotspot. An ambulance is seen near the Golden Palace Hotel after an quake hit Lombok Island, Indonesia, on Sunday.
  • Prince Harry, Duchess Meghan attend his childhood friend's wedding

    Prince Harry, Duchess Meghan attend his childhood friend's wedding

    The source said: 'The possibility of a reunion has been discussed and Meghan looks set to incorporate it into her trip. The royal couple were attending the wedding of the prince's long-time friend Charlie van Straubenzee to Daisy Jenks.
    US Economy Adds 157K Jobs In July, Unemployment Rate Drops To 3.9%

    US Economy Adds 157K Jobs In July, Unemployment Rate Drops To 3.9%

    But the unemployment rate is an incomplete indicator, as it excludes people who didn't look for work in the past four weeks. This suggests that the trade disputes between the USA and China are not yet slowing down hiring in manufacturing.
    Agent urges Chelsea to let Courtois go

    Agent urges Chelsea to let Courtois go

    That has led to criticism from some supporters that money is the major motivating factor - a notion rejected by Henrotay. The 26-year old Courtois want the move to happen but is reluctant to do anything unnecessary to hurt the team.
  • Republican Troy Balderson Declares Victory in Ohio Special Election

    Republican Troy Balderson Declares Victory in Ohio Special Election

    It's election day, as voters in Ohio's 12th District decide the final congressional contest before November's national midterms. With 100 percent of precincts reporting, Balderson had a 1,754-vote lead over O'Connor, with more than 202,000 votes cast.
    Active-Duty Army Engineers Being Sent to Fight California Wildfires

    Active-Duty Army Engineers Being Sent to Fight California Wildfires

    Another blaze that ignited last week has damaged a historic Northern California resort in the Stanislaus National Forest. Meanwhile, firefighters are battling more than a dozen other major fires amid California's hot and dry weather.
    Israel PM defends law in face of Druze outrage

    Israel PM defends law in face of Druze outrage

    People take part at a protest march against the proposed Nation-state Law in Tel Aviv on July 14, 2018. For instance, Arabic has been reclassed as a special language whereas before it was official.
  • Boy 'taken for exorcism' found dead as 11 children are freed

    Boy 'taken for exorcism' found dead as 11 children are freed

    On Friday, eight members of the Sheriff's office raided the compound and discovered the children, who were dressed in dirty rags. Anderson said the 11 children found inside the compound at first played at neighboring properties but stopped in recent months.
    Mo Salah happy with Liverpool's transfer business

    Mo Salah happy with Liverpool's transfer business

    Fekir scored 18 goals for Lyon last season and can operate as a central attacking midfielder, on the flanks and even as a false 9. Earlier in the summer, Liverpool were favourites to land the Lyon captain but ran into trouble.
    Conor McGregor returns to UFC with title fight in October

    Conor McGregor returns to UFC with title fight in October

    The UFC boss added "We have a guy who works here at the UFC who loves the Diaz brothers and he wanted to get this fight done". A out between these two rivals has been on the cards since UFC 223, when McGregor attacked a bus which contained Nurmagomedov.


Popular

Jurgen Klopp praises Anfield reception for Loris Karius
After such an early flurry of action, the goals dried up temporarily. "There are no doubts about Hendo". Alisson arrives from Roma where he faced the Reds in the Champions League semi-final last season.

Pacific Union agents killed in Santa Ana plane crash
Family members identified one of the victims as Nasim Ghanadan, who was a realtor from the East Bay and on the flight for work. The plane was owned by Category III Aviation Corp., a San Francisco-based real estate consulting firm, according to KCBS .

National Basketball Association condemns sealing of NASS premises by DSS
The blockade came amid heightened tensions between lawmakers and the presidency. After meeting with Osinbajo, he left the villa without speaking with reporters.

Melania Trump Has Kind Words For LeBron James | Newsradio 1020 KDKA
Lemon tweeted, "Who's the real dummy?" "I don't think we should make much of it at all", Cross said of the statement. When asked what he would say to Trump if he was sitting right here, James said, "I would never sit across from him".

Pogba becoming increasingly frustrated at Manchester United
Former Liverpool FC captain Redknapp believes Pogba should have been given the responsibility of captaining Manchester United . Jose Mourinho tells ESPN FC that the World Cup was the ideal habitat for Paul Pogba as he could 'only think about football '.

China vows to safeguard Iranian nuclear deal
Also last month, China , which is Iran's biggest customer, said it did not accept unilateral sanctions against Iran. President Donald Trump who "has breached obligations", Iran's Foreign Ministry Bahram Qasemi said Saturday.

Motorola May Launch Moto Z3, One Power and Motorola One Today
Considering the Moto Z3's high-end specs - even if it's a little outdated - $460 is a pretty great asking price . The dual cameras are used for depth sensing for AI photos as well as for features such as Cinemagraphs.

20 people killed after old-time plane crashes in Swiss Alps, authorities say
It was flying a group of 17 Swiss nationals and a three-member family from Austria on a sightseeing tour for the company JU-AIR. Swiss media have been citing plane experts' speculations that the current heat wave may have contributed to the crashes.

Willian returns to training ahead of Man City clash
It's the first opportunity to see City's all time most expensive player, Mahrez, play a meaningful game with his new club. The Algerian worldwide finally made his move to the Citizens from Leicester City have been linked since last summer.

States Vow to Continue Fight Against Trump's Car Fuel Rules
It would halt requirements that automakers build cleaner, more fuel-efficient cars, including hybrids and electric vehicles. Dan Becker of the Safe Climate Campaign dismissed the Trump administration's arguments as a "parade of concocted horrors".