Oil prices climb as Iran sanctions loom

Oil Prices Climb Ahead of US Sanctions on Iran

Oil Prices Climb Ahead of US Sanctions on Iran

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.

OnePlus Confirm That The 6T Won't Have a Headphone Jack
Going by the pricing of the current OnePlus 6 , it is possible that the 8GB RAM + 128GB variant of the 6T will be priced at $569. In the battery life department, the OnePlus 6T listing on Giztop suggests that it could be slightly better than its predecessor.

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.

Recommended News

  • Apple shows off iPhone XS

    Usually the new iPhone reaches Doha on the same day through grey market but will be priced exorbitantly higher than actual price. For all that huge screen on the iPhone X , the case isn't truly that much bigger than that of the iPhone SE.
    Pluto can get the status of the ninth planet

    Pluto can get the status of the ninth planet

    Metzger was insistent enough on changing this definition to delve into astronomical literature from the past two centuries. The authors found only one such mention - a study published in 1802 - which was based on flawed, now-disproven reasoning.
    I've Never Wanted To Leave Tottenham

    I've Never Wanted To Leave Tottenham

    And so, Manchester United could still come back for the Belgian global , although his words suggest he is committed to Tottenham. So, I had to battle to get my place back in the team. "Everything on my future that has been said by the press is not correct".
  • Hurricane Florence: Your guide to the story

    In the midst of what's being called a "monster storm", some USA residents are welcoming Hurricane Florence with parties. Hurricane Florence , after weeks of warnings, has finally begun to touch down in the Carolinas on Thursday afternoon.
    Palermo president Maurizio Zamparini believes Paulo Dybala is ready to leave Juventus

    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 .
    Aston Martin announces Rapide E as its first all-electric model

    Aston Martin announces Rapide E as its first all-electric model

    The batteries will be supplied by Hyperbat Limited, a new joint venture between WAE and the Unipart Manufacturing group. We're told deliveries will take place towards the tail end of next year, and there's no price yet.
  • Japan proposes end to commercial whaling ban, faces pushback:The Asahi Shimbun

    Japan proposes end to commercial whaling ban, faces pushback:The Asahi Shimbun

    The commission declared a "pause" to commercial whaling beginning in the 1985-1986 season, but it remains in place today. Tokyo justified the practice as a part of scientific research, which was allowed by the moratorium.
    Author who wrote ‘How to Murder Your Husband’ charged for murdering husband

    Author who wrote ‘How to Murder Your Husband’ charged for murdering husband

    And he liked to lead groups of students on "experimental field trips" into the forests, perpetually hunting for new ingredients. She wrote she would not want to "worry about blood and brains splattered on the wall", or " remembering lies".
    Household incomes rise to new high, but rate of health coverage flattens

    Household incomes rise to new high, but rate of health coverage flattens

    Much of these gains in household income and workforce participation come as the economy's strength continues to climb in 2018. The nation's median income - the midpoint where half makes more and half less - didn't start rising again until 2014.
  • Booker to headline Iowa Democratic banquet in October

    Booker to headline Iowa Democratic banquet in October

    And the Democrats seemed to think that contradicted his testimony. "So I think it's been not helpful to any cause that I can see". Joe Donnelly in IN or Claire McCaskill in Missouri may benefit from a court battle that energizes the Democratic base.
    Myanmar's Suu Kyi says in hindsight could have handled Rakhine issue better

    Myanmar's Suu Kyi says in hindsight could have handled Rakhine issue better

    However, Aung San Suu Kyi said the reporters have the right to "appeal the judgment and to point out why the judgment was wrong". In her comments, Suu Kyi said she had read the ruling herself and questioned whether those criticising it had done the same.
    Turkish lira hits new high amid rate hike talk

    Turkish lira hits new high amid rate hike talk

    It said: "Accordingly, the committee has made a decision to implement a strong monetary tightening to support price stability". It was not immediately clear if Erdogan had been aware of the central bank's decision when he made his comments.

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.