Iran sanctions, Opec output cuts keep oil prices buoyed

Randal Sanchez
May 15, 2018

OPEC raised its outlook for global oil demand Monday but added the USA exit from the Iran nuclear deal to a list of economic uncertainties fueled by US trade policies. On Friday, West Texas Intermediate crude oil closed at $70.70 per barrel, after rising $2 during the week. Sharenow also estimated oil to go beyond the $80 level in the short term.

With renewed U.S. sanctions looming against Opec member Iran, analysts said crude prices were well supported.

OPEC is to focus on oil inventory, rather than price.

US President Donald Trump directed his Secretaries of State, Energy, and the Treasury to significantly reduce the amount of petroleum and petroleum products bought from Iran, according to a memorandum released by the White House on Monday.

If Descalzi's predictions proved true, this could presumably persuade Mazroui to reverse course and oblige OPEC members to pump more in order to compensate for Iran, instead of maintaining the cutbacks.

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Later, she was sent to her husband's family, despite her father's claims that the marriage was cancelled. Al-Imam volunteered to represent the teen after her original lawyer took themselves off the case.

The White House has said it will impose sanctions on companies that continue to purchase Iranian oil but allow them six months to wind down those contracts.

SEOUL, May 15 (Reuters) - South Korea's crude oil imports from Iran fell 12.1 percent in April from a year ago, while imports of Russian oil more doubled, customs data showed on Tuesday.

The cartel also said its output rose slightly last month, mainly via Saudi Arabia, but raised its demand forecast for next year by 25,000 barrels per day to average 98.85 million barrels per day. According to Goldman, global oil demand growth in the first quarter of 2018 is likely to have seen the strongest yearly growth since the fourth quarter of 2010. This is why the sanctions against Iran is going to impact Brent much more than it is going to impact WTI crude oil. The production agreement with Russian Federation and non-OPEC members is slated to run through year-end but it could potentially end earlier, be modified or even extended beyond beyond 2018.

Shortly after Trump's pullout announcement, a number of reports by Bank of America Corp suggested that the Iran-related move coupled with a dip in Venezuela's oil production will lay a heavy burden on global crude oil markets. US rig counts have continued to rise sharply, implying that production will continue to rise as new wells come online. Higher crude oil prices, meanwhile, support the value for the eventual public offering of Saudi Aramco, the biggest oil company in the world.

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