Oil near four-year high as Washington's Iran sanctions loom

Oil near four-year high as Washington's Iran sanctions loom

Oil prices rose more than 1 percent on Friday, with Brent climbing to a four-year high, as USA sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production.

Worldwide benchmark Brent crude traded at around $83.01 on Monday, up around 0.34 percent, while US West Texas Intermediate (WTI) stood at around $73.42, more than 0.2 percent higher.

OPEC and oil traders are now in fundamental disagreement about the market outlook and the standoff is fuelling a sharp rise in prices that could spell trouble for the global economy over the next 18 months.

The most-active December Brent crude futures contract LCOv1 settled up 59 cents at $81.38 a barrel, below the session high of $81.90 but still within sight of Tuesday's four-year high of $82.55. That's the highest level since November 2014.

Brett Kavanaugh Will No Longer Be Teaching At Harvard Following Student Protests
It's unclear if the class will ever be offered again, though Kavanaugh's faculty page now redirects to the general faculty directory.

The United States sanctions on Iran's energy industry, which is expected to come into force on November 4, are created to cut crude exports from the third-biggest producer in OPEC.

U.S. President Donald Trump called Saudi Arabia's King Salman on Saturday, discussing ways to maintain sufficient supply once Iran's exports are hit by sanctions. Oil analysts estimate that exports from Iran can be thinner by 1.5 million barrels per day when the new set of United States sanctions start. Two sources familiar with OPEC policy told Reuters that Saudi Arabia and other OPEC and non-OPEC producers had discussed a possible production increase of about 500,000 barrels per day (bpd).

Washington's sanctions are set to start on November 4, and analysts say there may not be enough spare production capacity in the short-term to meet demand, potentially requiring large storage drawdowns. The global benchmark crude traded at a $9.68 premium to WTI for the same month. "However, such optimistic claims are falling on deaf ears", PVM Oil Associates strategist Stephen Brennock said. USA officials have been working with refiners in Asia to find replacements or Iranian oil. Bloomberg reports that India has no plans to purchase Iran's oil starting in November with South Korea and Japan pledging the same. Elsewhere, exports look set to continue its plunge with China's top refiner, Sinopec, looking to halve its oil imports from Iran to around 130k bpd.

It's also interesting that the oil price remains high, even though Russian Federation increased its output during September, to a record high level of 11.356 million barrels of oil and condensate a day.

Related Articles

  • Open Brexit warfare as Boris Johnson takes on May at Conference

    Open Brexit warfare as Boris Johnson takes on May at Conference

    Mr Johnson used his appearance on Tuesday to make the case for greater economic freedom after Brexit and lower taxes. Johnson during his speech and laughed uproariously at his jokes. "That is not what we voted for", he said.
    Napoli manager Ancelotti hails Liverpool ahead of Wednesday’s clash

    Napoli manager Ancelotti hails Liverpool ahead of Wednesday’s clash

    Kassai was in charge when Ancelotti's Bayern Munich side lost 4-2 after extra-time to Real Madrid in a 2017 Champions League quarter-final second leg.
    U.S. Congress could thwart new North American trade agreement

    U.S. Congress could thwart new North American trade agreement

    The deal then would have to be approved by Congress. "Anything you submit to Congress will be trouble", he said. That started a 90-day clock that would let Pena Nieto sign the new pact before he leaves office December 1.
  • Tom Hardy says his

    Tom Hardy says his "favorite 40 minutes" were cut from Venom

    Early reactions on the film are already online following its world premiere screening in Los Angeles , California, on Monday. That's a lot of footage to cut from a movie, especially if it's good. 'Social embargo for #Venom is up.
    Buehler helps Dodgers beat Rockies, win NL West

    Buehler helps Dodgers beat Rockies, win NL West

    Jesus Aguilar homered and drove in three runs, and host Milwaukee remained tie for first in the NL Central by pummeling Detroit. In a surprising twist, Nats manager Davey Martinez revealed after the Saturday's game that Erick Fedde will start on Sunday.
    Kavanaugh Investigation Wrapping Up - Senate Vote by Friday?

    Kavanaugh Investigation Wrapping Up - Senate Vote by Friday?

    While an anonymous letter, accusing Kavanaugh of sexual misconduct , has also surfaced, its authenticity is yet to be verified. Senator Joe Donnelly is siding with the rest of his party in vowing to vote against the confirmation of U.S.
  • Nationwide emergency alert test scheduled for Wednesday

    Nationwide emergency alert test scheduled for Wednesday

    The WEA is in addition to the Emergency Alert System , or EAS , which has been utilized for decades via broacast outlets. Despite the name, "the president will not originate this alert, say, from his mobile device", the official said.

    Manchester United extend winless run in dour stalemate with Valencia

    With the hosts struggling to carve out chances, Jose Mourinho withdrew Alexis Sanchez for Anthony Martial in the 76th minute. But there are a number of reasons why the former Real Madrid manager might not be the right choice for Manchester United .
    Manchester United vs Valencia

    Manchester United vs Valencia

    Valencia , have nearly always done well in the home of Manchester United except for the 3-0 defeat in the 1999/2000 season. Hello! Welcome to the Live Updates of Manchester United Vs Valencia! "We have to look at ourselves as players".
  • 'It's a very scary time for young men in America'

    'It's a very scary time for young men in America'

    Cindy Hyde-Smith, who was appointed to fill the seat of Republican Thad Cochran, who retired in April. Donald Trump holds a "Make America Great Again" rally in Mississippi.
    Trump Mocks Kavanaugh Accuser Christine Ford at Rally: ‘I Had One Beer!’

    Trump Mocks Kavanaugh Accuser Christine Ford at Rally: ‘I Had One Beer!’

    You could be someone that was flawless your whole life, and somebody else could accuse you of something. Republicans control the Senate by a 51-49 margin. "We Want Kavanaugh!" as Trump continued his speech.
    Tottenham's big guns missing for visit of Barcelona

    Tottenham's big guns missing for visit of Barcelona

    We need to produce that same energy, the crowd were incredible that night. "We are not victims though". That is completely unfair for a team that wants to win some titles.