Oil prices climb as Iran sanctions loom

Oil prices climb as Iran sanctions loom

Oil prices climb as Iran sanctions loom

Russian Energy Minister Alexander Novak said on Tuesday that Russia and a group of producers around the Middle East dominated Organization of the Petroleum Exporting Countries (OPEC) may sign a new long-term cooperation deal at the beginning of December, the TASS news agency reported.

Oil prices could soon rise above $80 a barrel as American sanctions on Iran move closer, Venezuelan production falls and Libyan supplies face disruption, the International Energy Agency has warned.

China has said that it would not stop buying Iranian oil, but Beijing is also said to have agreed not to increase its oil purchases from Iran.

"A drawdown in crude oil inventories isn't very comforting when you're going to lose a lot of Iranian crude in a couple of weeks", said Phil Flynn, an analyst at Price Futures Group.

US crude stocks fell by 8.6 million barrels in the week to September 7 to 395.9 million, the American Petroleum Institute (API) said on Tuesday.

Since spring when the President Donald Trump administration said it would impose sanctions on Iran, crude traders have priced in a risk premium reflecting the supply shortages that may occur when exports from the third-largest OPEC member are cut.

Major Japanese refiners were said last week to have officially notified Iran that they would halt all imports of Iranian oil for October while they wait for the Japan-U.S. talks on Iranian oil imports to make a permanent decision on how to proceed in November.

Palermo president Maurizio Zamparini believes Paulo Dybala is ready to leave Juventus
And on Wednesday we have the Champions League against Valencia, which is a competition that gives me many emotions. Allegri should come to Palermo and win the Scudetto .

The Economic Times (ET), an Indian daily said Iran now exports about 2 million barrels a day which is already 28% less than what they used to export in April. Oil production has been hit by attacks on oil facilities and blockades, though past year it partially recovered to around one million barrels per day.

"Crude oil production in OPEC rose month-on-month by 278,000 barrels a day in August, to 32.57 million bpd in August", the oil cartel said.

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.

Combined output by these three producers has risen by 3.8 million bpd since September 2014, more than the peak 3 million bpd Iran has managed during the last three years.

"World demand will average 98.82 million bpd in 2018, a demand growth of 1.62 million bpd", said S&P.

As Middle East markets tighten, Asian buyers are seeking alternative supplies, with South Korean and Japanese imports of US crude hitting a record in September.

United States light crude pushed over $70 due to falling USA crude inventories and production levels.

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