Oil rises as US renew sanctions against Iran

Oil rallies as Iran sanctions kick in

Oil rallies as Iran sanctions kick in

Another reason for the uncertainty is the lack of 100% compliance with the USA government.

Crude oil prices extended gains Tuesday as the Trump administration's sanctions against Tehran kicked in, setting the stage for a drop-off in production from the world's fifth-largest producer. Beijing can't match that dollar-for-dollar because it imports significantly fewer American products than the USA does from China.

Futures in NY were little changed after a 0.8-percent increase on Monday.

Oil prices had been edging higher prior to the announcement.

Syncrude Canada's nameplate capacity stands for roughly 10 percent of the Canadian crude oil supply.

Looking ahead to 2020-21, Della Vigna anxious that the impacts of the slowing pace of new projects will start to be felt, and USA shale will begin to decline; however, he said now is a flawless opportunity for "big oil" firms to negotiate better tax terms with governments and "do more activity - that doesn't necessarily mean more money".

U.S. crude inventories fell 6.02 million barrels last week, the API was said to report.

On Friday, crude oil futures ended down $0.47, or 0.70%, at $68.49 a barrel, after data showed oil output in Russian Federation to have increased sharply by 150,000 barrels per day in July, compared to a month earlier. Friday's Baker Hughes crude oil rig count was down slightly from last week, reducing the number of oil rig counts from 861 to 859. Meanwhile, the U.S. said Tuesday it will begin imposing tariffs on an additional $16 billion in Chinese imports in two weeks. The EIA expects production to fall to 1 million barrels per day by year-end.

The sanctions that went into effect yesterday target Iran's trade in US dollars, which includes oil, metals, coal, and cars.

EIA also reported on Wednesday that US oil production declined to 10.9 million barrels per day during the week ending July 27, dropping from its record high level of 11 million barrels per day. In April, vessels belonging to the National Iranian Tanker Co. were hauling a little under half of country's crude and condensate exports.

Prior to this deal, International Olympic Committee had struck deals for importing 10 million barrels from six cargoes in the spot market. "This will help them import USA crude on a regular basis", Senthil Kumaran, senior oil analyst at Facts Global Energy, said.

"Anyone doing business with Iran will NOT be doing business with the United States", he added. The sources declined to be identified as they are not authorised to speak to the media.

West Texas Intermediate crude for September delivery traded at $69.11 a barrel on the New York Mercantile Exchange, down six cents, at 7:55 a.m.in London. The differential was 4.72 dollars at the end of the week.

Brent prices fell 6.5 percent in July, their steepest monthly drop since July 2016.

The higher differentials between the two major benchmarks are, the more arbitrage opportunities for traders to pursue.

For August loading, while NIOC is heard to be delivering crude oil cargoes to some Indian state-owned refiners on a DES, or delivered ex-ship, basis, others have been buying on both DES and FOB bases.

Notícias recomendadas

  • Texas A&M student gigs 'em with gator for graduation photos

    Texas A&M student gigs 'em with gator for graduation photos

    When it came to her graduation photographs Texas A&M University student Makenzie Noland wanted to make sure they really stood out. If you know a soon-to-be college graduate who wants to get noticed, tell them not to pose alone for their graduation picture.

    Woods trying something new at PGA Championship

    Asked when he first started feeling "comfortable" playing in majors, Love said, "Probably from '97 on, it was a little easier, but you're never really comfortable".
    Samsung Galaxy Note9's United Kingdom  pricing leaks online, might start at £899

    Samsung Galaxy Note9's United Kingdom pricing leaks online, might start at £899

    As per a WinFuture report, the S Pen will get Bluetooth support, a feature that has been suggested in leaks multiple times. While the size is only slightly different from Galaxy Note 8 , the phone will also come with a tweak to its design.
  • Woman tells police she's a 'clean, thoroughbred, white girl'

    Woman tells police she's a 'clean, thoroughbred, white girl'

    As of Tuesday the birthday celebrating " white " girl was no longer in custody according to online jail records. Cutshaw reportedly had a blood alcohol content (BAC) of 0.18, the police report says .

    Sized Hailstones Kill Animals, Injure Guests at Colorado Springs Zoo

    The fire department says five people were taken to the hospital by ambulance while 11 others were treated on scene and released. Authorities reopened the road leading up to the zoo so that guests can assess the damage to their cars or to tow them away.
    Liverpool complete impressive pre-season with Torino win

    Liverpool complete impressive pre-season with Torino win

    Liverpool manager Jurgen Klopp believes that every player will be required if they are to enjoy a successful season. Three minutes later, Wijnaldum rounded off a well-worked team move with a neat finish to double the hosts' lead.
  • Syrian first lady Asma Assad is being treated for breast cancer

    Syrian first lady Asma Assad is being treated for breast cancer

    Asma AL Assad , 42, has been married to the president for 18 years, and they have three children, Hafez, Zein, and Karim. Before the crisis began in March 2011, she was the subject of flattering profiles in Vogue and other fashion magazines.
    CEO Jack Dorsey Explains Why Twitter Didn't Ban Alex Jones

    CEO Jack Dorsey Explains Why Twitter Didn't Ban Alex Jones

    Dorsey's announcement after Apple, Facebook and YouTube earlier this week removed some content from Jones and InfoWars . Further in Dorsey's thread, he said it was up to journalists to "document, validate, and refute" claims like Jones'.
    Universal's Cowboy Ninja Viking Has Delayed Production Indefinitely

    Universal's Cowboy Ninja Viking Has Delayed Production Indefinitely

    Universal has pulled Cowboy Ninja Viking back from its June 28, 2019 release date, amid hot rumors of heavy turbulence on the set. Cowboy Ninja Viking is set to be another big franchise for star Chris Pratt .
  • Death toll rises to 131 in Indonesian quake

    Death toll rises to 131 in Indonesian quake

    Lombok lies on the Ring of Fire , a belt surrounding the Pacific Ocean that is especially prone to earthquakes and volcanoes. Tourists and Gili residents alike were seeking to leave the islands, according to Indonesia's search and rescue agency.
    Snapchat loses three million users in three months

    Snapchat loses three million users in three months

    The company behind Snapchat posted revenue of $262.3 million in the period, also topping the estimate of $247.2 million. Snapchat founder and Snap CEO Evan Spiegel blamed the decline in users on the redesign of Snapchat earlier this year .
    Rick Gates Forced Into Admitting Extramarital Affair by Paul Manafort’s Lawyer

    Rick Gates Forced Into Admitting Extramarital Affair by Paul Manafort’s Lawyer

    Earlier in the day, the Trump campaign was discussed at length for the first time. "The secret life of Rick Gates ", he said. He also acknowledged he may have submitted personal expenses to President Trump's inaugural committee for reimbursement.

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.