Oil price nears $80

15 May, 2018, 22:42 | Author: Kathy Ellis
  • OPEC Adds US Exit From Iran Nuclear Deal To 'Disruptive Concerns'

How much higher oil prices can go depends on several factors, many linked to supplies in the aftermath of the USA leaving the Iran nuclear deal, according to analysts.

USA light crude was 26 cents lower at $70.69 a barrel, also not far off its highest since November 2014.

Iran's oil buyers continue to buy its crude, assessing the implications of the sanctions during the 180-day wind-down period.

- Oil prices are at four-year highs, raising the price of producing gasoline.

Elsewhere, supply concerns have been mounting over the last week after President Donald Trump the U.S. pulled out of the Iran nuclear deal - a move that reimposes sanctions on Iranian barrels.

With Japan and South Korea already indicating that they will aim to attain a waiver from the United States in order to continue buying Iranian crude, the impact of Trump's actions will rest on how far he goes in comparison with Obama's previous sanctions.

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.

South Korea imported 1.24 million tonnes of Iranian crude, or 303,025 barrels per day (bpd), in April, down from 1.41 million tonnes from previous year, according to the customs data.

US Fighter Jets Intercept Russian Bombers off Alaskan Coast
The Russian bombers never entered U.S. airspace, the spokesman for the North American Aerospace Defense Command told CNN . NATO naval officials in late 2017 also reported Russian submarines probing underseas data cables in the North Atlantic.

But so much is unknown about how the Trump administration will review those requests, especially at a time of rising oil prices going into the peak summer driving season in the US.

Michael Wittner, analyst at Societe Generale, forecasts USA sanctions will remove 400,000 to 500,000 bpd of Iranian crude from the global market.

The oil group also lifted its 2018 forecast for production growth outside of OPEC and now sees it expanding by 1.72 million bpd, up from a prior view of 1.71 bpd, with the USA accounting for 89% of the 1.72 million bpd increase.

The tightening market has just about solved the global supply overhang that has weighed down oil prices between 2014 and 2017.

Among U.S. shale producers, Oasis Petroleum (OAS) shares rose 0.6%, in buy range after breaking out of a cup base with a 11.49 entry point and Carrizo Oil & Gas (CRZO) rallied 1.2%, also in buy range after breaking out of a cup base with a 25.20 buy point.

LaForge, from Wells Fargo Institute, says the supply-demand balance in the oil market is already shifting toward oversupply, given that growth in demand is limited by an economic expansion that at least in the U.S.is in its later stages.

Iran now provides approximately 4 percent of global crude supplies and is the third-biggest manufacturer in the OPEC.

Recommended:



Popular

New York School Districts Brace for Budget Votes
Newsday's annual survey of district spending plans found wide disparities in approach from one community to another. In New Rochelle, the budget will need at least 60 percent of voters to approve the spending plan in order to pass.

Google is under investigation in Australia for data collection via Android devices
Everyone who uses Google services must agree to these terms and conditions, but there is now a debate over whether this consent is valid.

Postmortem Karnataka polls: Did Lingayat minority card backfire on Congress?
He did not give further details saying, "We will come back to you once again with all details". There is no question of a hung Assembly.

Trump says he wants the Commerce Department to lift ZTE's export ban
Trump's unexpected announcement came as the two countries prepared to continue trade talks in Washington this week. US companies that export to China have seen their goods held up at China's ports amid tougher inspections.

Afghanistan: 9 killed in Jalalabad attack
Earlier, he said the attack had been carried out by four attackers and that there had been two explosions. Officials are concerned that a low voter turnout will undermine the credibility of the poll.

Tottenham player ratings: Spurs beat Leicester at their own game
Lucas Moura won the ball high up the pitch and released Kane, who raced in on goal and shot past Eldin Jakupovic at the near post. And Pochettino's side made no mistake as they ran out 5-4 winners in a insane game against Leicester City at Wembley.

Woman to be executed for killing man during rape
Shahd Hamza, 20, was among those who came to support Hussein in court, after hearing about her case in a group chat on WhatsApp. Forced child marriage and marital rape are not considered crimes in Sudan, and can not be used as evidence in a defence.

Starbucks changes bathroom policy following racial firestorm
ATR reflects the trading range, and knowing this can allow you to more accurately buy and sell into trends as well as set stops. American Electric Power Company, Inc. traded 1909849 shares at hands versus to its average volume of 2902.61K shares.

New US embassy in Jerusalem high-profile but humble
The Israeli and Egyptian governments enacted the blockade in 2007 after Islamic militant organizations overran the region. Thousands of protesters Friday gathered in five tent camps set up weeks ago, each several hundred meters from the border.

Lewis Hamilton and Mercedes on top in crash-hit Spanish GP practice
Hamilton will be trying to win his second race in a row and add to his four-point lead over Vettel in the drivers' standings. Haas maintained their improved performance from practice with Kevin Magnussen the lead midfield runner in seventh.