Published: Sat, May 12, 2018
Finance | By Marshall Campbell

OPEC, awaiting Trump Iran decision, to keep working for stable oil market

OPEC, awaiting Trump Iran decision, to keep working for stable oil market

"Given the unilateral move by the USA, much of the movement on oil prices had been factored in", said Stephen Innes, head of Asia-Pacific trade at OANDA.

ANZ bank said Trump's decision "puts into place a scenario that could see the crude oil market tighten significantly in H2 2018 and into next year".

Britain has informed the United States that they remain firmly committed along with their European partners to maintain the Iran Nuclear Deal. Resulting rising oil prices would have a mixed impact across the region, driving prices higher for some countries that rely heavily on imports, such as Japan, while boosting revenues for exporters such as Indonesia.

President Donald Trump's announcement that the USA will leave the deal means that Washington will begin reinstating sanctions.

A number of countries have already cut reliance on Iranian oil, as well as other "traditional" sources of supply, due to surge in cheaper USA crude exports. According to a Bloomberg report, UBS Group believes that sanctions could reduce oil exports to Iran by half million barrels per day in the upcoming six-month period.

He said Iran's right to peaceful use of nuclear energy should be respected along with worldwide community's strong interest in the exclusively peaceful nature of Iran's nuclear program.

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However, Mourinho's side will also have one eye on the all-important FA Cup final against Chelsea in a couple of weeks time. Romelu Lukaku and Marouanne Fellaini are injured and unable to play against Fellaini's former manager David Moyes .

India yesterday said it will take necessary measures to offset any adverse impact on its interests due to US President Donald Trump's decision to dump the Iran nuclear deal. The global benchmark crude traded at a $6.44 premium to July WTI.

That made Iran the third-biggest exporter of crude within the Organization of the Petroleum Exporting Countries, behind Saudi Arabia and Iraq.

Jefferies said OPEC "has the capacity to replace the Iranian losses" but warned that "even if physical supply is held constant. the market will still be faced with a precariously low level of spare capacity". Even before Trump's announcement gasoline prices were almost 50 cents a gallon higher than a year ago.

The Bureau of Energy Resources got the job done during the Iran sanctions that spanned 2012 to 2015, when President Barack Obama had the co-operation of European leaders in choking off Iran's main revenue source to pressure it to curb its nuclear programme.

The two leaders agreed for their teams to hold discussions on the potential impact of U.S. sanctions on firms doing business in Iran.

The Prime Minister raised the potential impact of United States sanctions on those firms which are now conducting business in Iran.

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