Oil in Global Economy Series: Russia's oil production at record high

A man puts gas in his car at a Shell filling station in Tokyo Friday Nov. 28 2014

A man puts gas in his car at a Shell filling station in Tokyo Friday Nov. 28 2014

The risk of declining Chinese demand for oil is worrying Middle East officials more than Iran's supply curbs as a result of USA sanctions.

US crude oil hasn't traded at $95 a barrel in since 2014, but this is the year that could change.

On Friday, WTI crude oil settled at $69.80 a barrel while ICE Brent crude closed at $77.42. "We're heading into these Iran sanctions, which is going to remove supply", said Ashley Petersen, lead oil analyst at Stratas Advisors in NY. Still, many Asian importers are continuing to plan for Iranian oil purchases despite the US sanctions.

In 2017, 56 percent of China's crude oil imports came from countries within OPEC, a decline from a peak of 67 percent in 2012 but still making it a significant market for OPEC and its Middle East members.

Jiji Press said it appeared Japan will be unsuccessful in its efforts to get a waiver from Washington that would allow it to continue importing oil from Iran.

Many worldwide shippers have stopped loading Iranian oil as US financial sanctions against Tehran prevents them from insuring its cargoes. With concerns growing that global spare capacity will be stretched if other producers such as Saudi Arabia pump more to make up for the loss, the oil market is revealing risks of a crunch.

In August, Iran's oil minister said that French oil-and-natural-gas company Total had "officially left" Iran in the face of the USA threats.

Jim Furyk Announces Three Of His Ryder Cup Wildcards
Furyk heaped particular praise on 14-times major champion Woods, who will now relinquish his role as a vice-captain. The 42nd Ryder Cup takes place on the Albatros Course of Le Golf National, Paris from 28th-30th of September 2018.

At the start of the week after the long USA holiday week-end, crude oil was already being underpinned by supply issues after global markets had tightened throughout the month of August.

Output was boosted by a recovery in Libyan production and as Iraq's southern exports hit a record high.

FGE estimates Iran's exports will slump to below 1 million barrels a day by mid-2019, while industry consultant Energy Aspects Ltd. expects a plunge of 1.5 to 1.7 million in daily shipments by the end of this year from current levels of about 2.5 million.

Meanwhile, trade disputes between the United States and other major economies including China and the European Union are expected to hurt oil demand if they are not settled soon.

According to Barclays bank, worries over supply issues are becoming more evident.

Resource-pour Japan relies heavily on imports of oil from the Middle East, though crude from Iran accounted for just 5.3 percent of the country's total imports a year ago.

Recommended News

  • Heat, age and Millman combine to floor Federer

    Heat, age and Millman combine to floor Federer

    He squandered two set points in the second set and another in the third set tiebreak as the errors piled up. For men's singles matches, the break would come between the third and fourth sets.
    Tropical Storm Gordon likely to become a hurricane Tuesday

    Tropical Storm Gordon likely to become a hurricane Tuesday

    Red flags flew over Pensacola-area beaches in Florida's Panhandle, where swimming and wading in the Gulf of Mexico was prohibited. A hurricane watch is in effect for the area stretching from the mouth of the Pearl River in MS to the Alabama-Florida border.
    Colin Kaepernick appears in Nike ad

    Colin Kaepernick appears in Nike ad

    In it, executive Jocelyn Moore reiterated the league's stated goal to " promote meaningful, positive change in our communities". Nike provides all National Football League teams with game-day uniforms and sideline apparel that bears the swoosh logo.
  • Typhoon Jebi: Japan hit by strongest storm for 25 years

    Typhoon Jebi: Japan hit by strongest storm for 25 years

    The tanker was also damaged, but its 11 crewmembers were not injured and remained on board, according to the coast guard. About 1.45 million households were without power in Osaka and its surrounding areas at 3pm local time.
    Chrome 69 Released With Enhanced Security, Customization, and Design

    Chrome 69 Released With Enhanced Security, Customization, and Design

    The new update will be coming your way today and will be visible on all platforms including desktop, Android and iOS. With this release, we see some of this being put into play with how they indicate whether a web site is secure.
    Explainer: What does the recession mean for South Africa?

    Explainer: What does the recession mean for South Africa?

    This is coming barely six months since the current president, Cyril Ramaphosa, took over power. Most economists predicted that South Africa would miss falling into a technical recession.
  • Donald Trump Slams CNN And NBC, Urges

    Donald Trump Slams CNN And NBC, Urges "Look At Their License" Tweet

    Ted Budd (R-NC) and GOP congressional candidate Mark Harris at Carmel Country Club in Charlotte, NC, U.S., August 31, 2018. He shared a Pulitzer Prize with the New York Times for their stories on Weinstein, which ignited the #metoo movement.
    At least 87 dead elephants found in Botswana

    At least 87 dead elephants found in Botswana

    This Is Africa , a local English-language magazine, tweeted at Masisi demanding the government take action. "Why?" the tweet said. Botswana has battled wildlife crises in the past, one of the major disaster is losing its last black rhino to poachers.
    Trump Blasts Jeff Sessions Saying Investigations Could Jeopardize Midterm Election

    Trump Blasts Jeff Sessions Saying Investigations Could Jeopardize Midterm Election

    A spokeswoman for Mr Sessions declined to comment, and the White House did not immediately respond to a request for comment. Here, we're interested in whether the recent indictments stem from investigations that began under Obama, as Trump claimed.
  • Jose Mourinho 'gets suspended jail sentence' for tax fraud

    Jose Mourinho 'gets suspended jail sentence' for tax fraud

    Manchester United manager Jose Mourinho says he places no blame on Paul Pogba for his penalty miss against Burnley . According to Celebrity Networth, Mourinho is worth $50 million (£39 million) and earns $27 million (£21 million).
    Egyptian man's backpack ignites near US Embassy, arrested

    Egyptian man's backpack ignites near US Embassy, arrested

    The area has been cordoned off after the incident, and there is now a heavy presence in the area, with dozens of officers nearby. Embassy in Egypt after chemicals in his backpack caught fire, an episode authorities labeled a botched attack.
    Roxanne Pallett says she is ‘most hated girl in Britain’

    Roxanne Pallett says she is ‘most hated girl in Britain’

    Roxanne replied: "Watching it feels like a completely different scenario to what it felt at the time". I am crippled with emotion and shame, that I would have put someone in that position.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.