Published: Fri, August 10, 2018
Finance | By Marshall Campbell

At Iran's Risk, Trump Is Winning Over Fastest Growing Oil Market

At Iran's Risk, Trump Is Winning Over Fastest Growing Oil Market

Spot Brent crude oil futures were at $74.08 per barrel at 0624 GMT on Tuesday, up 33 cents, or 0.4 percent, from their last close.

Other than the four key importers, the European Union has said it will not enforce United States sanctions which are to be imposed on Iran's oil and banking sectors on November 4.

People's Republic of China imported 83.51 per cent of the total exported quantities of Omani crude oil during July 2018, a slight drop of 0.04 per cent month-on-month. West Texas Intermediate, the USA benchmark for the price of oil, was up 0.06 percent to $66.89 per barrel.

Saudi Oil Minster Khalid al-Falih said his government's policy is to meet market considerations first.

Along with supply risk attributed to over reliance of imported foreign crude, there is the issue of transfer of wealth, again something that plagued the USA for almost 40 years and forced its hand as it became involved in countless military endeavors in the Middle East. China's government said it will place tariffs on US goods including cars, crude oil and scrap metal starting on the same date.

Crude oil prices edged higher on Tuesday, amid rising concerns about global crude supply after US reimposed sanctions on Iran.

Oil prices rose on Tuesday after USA sanctions on Iranian goods went into effect, intensifying concerns that sanctions on Iranian oil, expected in November, could cause supply shortages.

Liverpool target Nabil Fekir won't rule out Lyon exit this week
Liverpool manager Jurgen Klopp was full of praise for Alisson Becker following the goalkeeper's impressive debut. Earlier in the summer, Liverpool were favourites to land the Lyon captain but ran into trouble.

Amid widespread concern that the revived US sanctions against Iran, which shipped out nearly three million barrels per day of crude in July, would tighten global supply, Brent crude oil futures rose 86 cents to $74.61 per barrel at 1052GMT and US West Texas Intermediate (WTI) crude futures were up 59 cents at $69.60 a barrel.

The sanctions are already brewing a potential confrontation between the USA and Iran as Tehran has threatened to block the Strait of Hormuz, an important sea route through which tankers ship more than 30 per cent of crude oil to the global market, in retaliation to the sanctions. Earlier today, crude oil sold off after it was announced that Saudi Arabia has resumed oil shipments through the Red Sea shipping line of Bab al-Mandeb over the weekend.

Inventories at Cushing, Oklahoma, the NYMEX crude futures delivery and pricing point, tightened further, falling 590,000 barrels to 21.8 million barrels, the EIA data showed. All countries must stop importing Iranian oil by then, the State Department said in June, or face sanctions.

Beyond the sanctions, the oil market was focusing on the USA market, where the American Petroleum Institute said on Tuesday that crude inventories fell by 6 million barrels in the week to 3 August to 407.2 million.

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

The conference noted that the oil market situation has further improved over the past six months, with the global economy remaining strong, oil demand relatively robust, albeit with some uncertainties, and with the market rebalancing evidently continuing.

Like this: