Oil prices jump after U.S. abandons Iran deal, plans 'highest level' sanctions

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Even without disruption to Iran's crude flows, the balance between supply and demand in the oil market has been tightening steadily, especially in Asia, with top exporter Saudi Arabia and No.1 producer Russian Federation having led efforts since 2017 to cap output to prop up prices.

The sanctions come amid an oil market that has been tightening due to strong demand, especially in Asia, and as top exporter Saudi Arabia and No.1 producer Russian Federation have led efforts since 2017 to withhold oil supplies to prop up prices.

Bolton said on CNN's "State of the Union" that he believes some European countries will end up supporting the United States despite comments from European leaders that they regret Trump's decision to withdraw.

"Oil prices could rise at least 10 dollars (a barrel), with Brent approaching near $90".

According to the report, India under the Modi government have benefited from lower oil prices in recent years.

Zanganeh said foreign investment was needed to develop Iran's its oil industry, but that it could survive even if foreigners chose to stay away for fear of USA penalties.

Iranian Oil Minister Bijan Zanganeh said on Thursday that U.S. President Donald Trump's decision to quit a multinational nuclear deal would not affect Tehran's oil exports.

The UK, France and Germany issued a joint statement emphasising their "continuing commitment" to the deal, which "remains important for our shared security". In a document accompanying the announcement, the Treasury gave an unequivocal "Yes" to the question of "Will the United States resume efforts to reduce Iran's crude oil sales?"

The sanctions seek to punish Iran for its nuclear program by limiting its ability to sell oil or do business overseas, affecting a wide range of Iranian economic sectors and individuals.

Iran's hardliners are already mobilising against any concessions to Europe, with Ahmed Khatami, a senior cleric, told a crowd at Tehran University that European nations could not be trusted.

Outside Europe, one of Iran's single biggest customers-China-has already reassured Tehran that it would continue to import its crude.

Brent crude futures settled 26 cents, or 0.3 percent, higher at $77.47 a barrel, after earlier hitting $78, the highest since November 2014.

Former President Barack Obama, whose administration negotiated the deal, called Trump's action "misguided" and said, "The consistent flouting of agreements that our country is a party to risks eroding America's credibility and puts us at odds with the world's major powers".

On May 8, President Trump announced the USA withdrawal from the "defective" multinational nuclear deal with Iran.

"The impact (of new sanctions) in India will be there, but not so high", said R Ramachandran, head of refineries at state-owned oil firm Bharat Petroleum Corp. Now, some market participants say the market could tighten dramatically after years of oversupply.

"The Europeans have between 45 and 60 days to give the necessary guarantees to safeguard Iranian interests and compensate the damages caused by the USA pullout", Icana.ir reported.

Shayne Heffernan Funds Manager at HEFFX holds a Ph.D.in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b.

On Wednesday, a separate OPEC source had said Saudi Arabia was monitoring the impact of the US move on oil supplies and was ready to offset any shortage but would not act alone.

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