ibusinesslines.com
ibusinesslines.com December 13, 2018


Oil rises ahead of US Iran sanctions

07 October 2018, 05:11 | Kelvin Horton

Crude Oil

Crude Oil

The Trump administration's sanctions on Iran kick in on November 4th, after which any countries purchasing oil from Iran could be subject to sanctions as well.

Criticizing America's longstanding military relationships with allies has been a hallmark of Trump's presidential campaign and his time in office.

"Mr. Trump has said OPEC is responsible for rising oil prices and has to raise production, but one must say that OPEC is not responsible, but the Trump himself is responsible for the rise", Zangeneh added. Bolton also said that the United States will not stop with the resumption of sanctions that existed before 2015. "You have to pay for your military, you have to pay'". "Iranian crude oil has been sold at a lower price than other crude oil to expand its market share after the US sanctions on Iran", said an official of the oil refinery industry.

They pointed to a Reuters report this week that Saudi Arabia and Russian Federation agreed in a private deal to expand oil production . Riyadh has worked to cultivate warm relations with the U.S. President after having rocky moments with former President Barack Obama.

Saudi Arabia welcomed Trump for his first overseas trip as president.

Saudi Arabian Crown Prince Mohammed bin Salman insisted the kingdom is fulfilling promises to make up for lost Iranian crude supplies, Bloomberg reported.

Brent crude oil futures were at $84.86 a barrel at 3.40am GMT, up 6c from their last close. Originally, the plan had apparently been to officially announce a production increase of 500,000 barrels per day, but this met with opposition from a number of countries, including Iran.


In the meantime, Korea's imports of Iranian crude oil remained at 58.2 million barrels, down 42 percent over the same period. Its record is 10.72 million barrels a day.

In addition, USA crude oil's increased price competitiveness contributed to the increase in Korea's imports of US crude oil. The average price for a gallon of regular gasoline in the U.S.is $2.88, up from $2.55 a year ago, according to AAA.

There is a risk that oil prices could hit $100 a barrel soon because a lot of uncertainties now exist in a very nervous and emotional market, Russia's Energy Minister Alexander Novak told Russian radio station Business FM in an interview on Thursday.

"OPEC and OPEC nations are, as usual, ripping off the rest of the world, and I don't like it".

"Current levels may be a little bit high", Novak said, commenting on the current price of oil.

Oil prices tend to overshoot on the upside (2008 and 2011) just as they have done on the downside (1998, 2009 and 2016) before correcting.



Other News

Trending Now

Liverpool v Manchester City — Big Match Focus
Klopp, however, believes Guardiola's City remain the team to beat in England ahead of their showdown on Merseyside. Klopp, though, thinks that tie showed Liverpool that they can not ever relax against Guardiola's men.

Democrat Manchin says he’ll vote to confirm Kavanaugh
Ford's goal here was never to impact the process to derail a nomination", attorney Lisa Banks said on All Things Considered . He's is up for re-election in a very red state, West Virginia. "I don't l know what her reasons are voting the way she is".

India vs West Indies 1st Test, Day 2
Meanwhile, Prithvi Shaw , Virat Kohli , and Ravindra Jadeja scored centuries to help India in posting a big total. He put on a 206-run partnership with Shaw and kept talking to the youngster while they were batting together.

Deadpool: Ryan Reynolds Says Goodbye To Chris Evans' Captain America
Earlier this year, Evans told The New York Times that wanted to "get off the train before they push you off". Here are the best social media reactions to Chris Evans's "departure" tweet.

Banksy painting 'self-destructs' in artist's prank at auction
The 2006 gallery version featured spray paint and acrylic on canvas, mounted on a board. They are discussing the next steps to take.

Senate confirms Brett Kavanaugh to US Supreme Court
Murkowski announced Friday that she would be pairing her vote with Daines as a professional courtesy and a gesture of goodwill. Senator Collins said: "We will be ill-served in the long run if we abandon the presumption of innocence and fairness".

Susan Collins and Lisa Murkowski take divergent paths on Brett Kavanaugh
Senate, and with the two key senators choosing to vote in favour of Kavanaugh, the confirmation looked locked-in late on Friday. A final vote on whether Judge Kavanaugh will join the nine-member panel could take place as soon as Saturday.