Oil rises as US sanctions on Iran stir supply worries

08 August, 2018, 12:50 | Author: Billie Castillo
  • Crude Oil Supply

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

The Iran sanctions have officially been cast.

West Texas Intermediate, the USA benchmark for the price of oil, was up 0.8 percent to $69.56 per barrel.

Iranian President Hassan Rouhani said he had support from the Europeans, China and Russian Federation in regard to a United Nations -backed nuclear agreement that offers sanctions relief in exchange for peaceful commitments from Tehran.

A build in supplies would have a negative impact on the price of oil.

Markets also anticipated an announcement from Washington later on Monday on renewed USA sanctions against major oil exporter Iran. While China hasn't taken on much USA crude because of trade tensions, the United States has been exporting more of its own oil to South Korea and Singapore.

But new data released on Monday showed Saudi Arabia's oil production fell in July by 200,000 bpd from the month earlier.

Some sanctions against Tehran, which had been lifted since 2015 under the Iran nuclear deal, were reimposed Monday. However, there are no actual energy sanctions imposed at this stage, but there will be some due later this year.

OpenAI Bots Crush the Best Human Dota 2 Players in the World
OpenAI is scheduled to face an active professional squad at The International 8, which kicks off on August 15. The characters Open AI played were selected by Twitch users, giving Team Human a slight advantage.

U.S. President Donald Trump tweeted that the sanctions were "the most biting sanctions ever imposed".

"Anyone doing business with Iran will not be doing business with the United States", he stated through his Twitter account.

"You can not order 2 million barrels like ordering a coffee somewhere", Beat Wittmann, a partner at financial consultancy Porta Advisors, told CNBC recently. But with opposition from other signatories of the agreement, especially among European allies, Sayed said it's becoming hard to guess how many barrels will be off the market by November. Administration officials have said they might look at requests on a case-by-case basis, while also maintaining that the goal is to cut Iranian oil imports to zero.

Many countries, including USA allies in Europe as well as China and India, oppose the sanctions, but the US government said it wants as many countries as possible to stop buying Iranian oil.

"The US is pursuing a strategy to aggressively curb Iranian oil exports by November", UBS analysts led by Giovanni Staunovo wrote in a note.

Observers have dismissed Trump's call for Saudi Arabia to abruptly increase oil production as political "noise".

But analysts remain widely skeptical Saudi Arabia would raise output by a large enough amount. OPEC+ countries will increase production by 1 million barrels per day, of which 200,000 bpd will be provided by Russian Federation.

Recommended:



Popular

Severe thunderstorm watch issued for Sudbury
Environment Canada has issued a severe thunderstorm watch for much of southern Ontario , including the GTA. Lightning kills and injures Canadians every year. 'When thunder roars, go indoors'.

Hart leaves City to join England keeper contingent at Burnley
The England global completed his £4million move from Manchester City on Tuesday and is impressed with the club he has joined. Hart, who has won 75 England caps, made almost 350 appearances for City, winning two Premier League titles and one FA Cup.

Newly Leaked 'Galaxy' Skin in Fortnite Could be a Samsung Exclusive
This seems to back-up previous rumours that Samsung Galaxy Note 9 users will be able to connect to DeX simply with a USB-C cable. The Note 9 is rumoured to have a huge 4,000mAh battery , 6.4-inch QHD+ Super AMOLED display and 6GB of RAM.

Frankfurt airport reopens after evacuation on security slip
Frankfurt Airport warned that disruptions to flights "can be expected" and advised passengers to check with their airlines. The alert was resolved shortly after 2.30pm local time and the airport resumed operating as normal.

D.C.-area forecast: Hot and humid, with storm chances increasing Wednesday
Remember the Storm Team 12 app can always bring you the latest weather alerts for your location as well as Titan Radar. After a stretch where we couldn't buy a drop of rain, we can't rule it out in any of the next seven days.

Mossad behind assassination of Syrian rocket scientist
His center was the target of Israeli air attacks last month and in September, the Observatory added. Asbar led the secret unit known as Sector 4 at the Syrian Scientific Studies and Research Center".

Imran Khan: A case of mistaken identity
After the inclusion of independent candidates, the total number of PTI seats in the National Assembly has reached 125, said Chaudhry.

Boris Johnson told to apologise over 'totally out of order' burka comments
Johnson wrote the comments after the first person had been fined for wearing a full-face veil in public in Denmark. Boris Johnson has been told to apologise for comments about burqa-wearing women (Victoria Jones/PA Wire).

German couple convicted over rape, online sale of young son
Lais, 39, had a previous conviction for child abuse, raising questions why he was allowed to live in a home with a child present. The boy is in foster care and, per his lawyer, doing OK considering what he has been through.

Italian police: 2 dead, 60-70 injured in explosion
Traffic cameras caught the tanker truck carrying flammable materials as it hit the truck in front of it, and caught fire. Italian media has reported that numerous injured were hit by debris and shattered glass following the explosion.