Global Geopolitical Series: US warns against allowing Iranian tankers to port

Secretary Jeremy Hunt

Secretary Jeremy Hunt

Oil prices slipped yesterday as concerns mounts that an economic slowdown may curb fuel demand growth overshadowed the reintroduction of sanctions on Iran.

As of 10:18 a.m. EST, WTI front-month crude prices traded at $59.71 per barrel, or a 1.6 percent decline, while Brent front-month crude oil futures traded at $69.63 per barrel, or down 1.4 percent.

This week, reports emerged that South Korea received a waiver allowing it to import around 4 million barrels a month, equal to about 130,000 bpd, of Iranian crude and condensate.

Oil prices fell on Wednesday, extending losses from the previous session, with markets well supplied amid rising production and USA sanction waivers that allow Iran's biggest customers to continue buying its crude.

Analysts said expectations of an economic slowdown in coming months was outweighing supply-side risks to crude markets from the reintroduced US sanctions against Iran, which started on Monday.

China and India were the largest markets for Iranian crude before the onset of sanctions and will remain such for the upcoming six months. "Much of this had stemmed from the Trump administration announcing oil waivers for 8 countries, which would allow for continued buying of Iranian crude", he added.

Crude output hit 11.6 million bpd, a weekly record, though weekly figures can be volatile.

12 killed, gunman dead in mass shooting at California bar
Later, he enrolled at nearby California State University, Northridge, last attending in 2016, the school said in a statement. Jasmin Alexander, who was with around 15 friends at the bar, said there was chaos and confusion inside when shots rang out.

In the USA, crude production increased to 11.6 million barrels per day last week, the highest level on record, according to Energy Information Administration data.

Crude has tumbled nearly 20% since touching a four-year high last month as bearish supply signals around the globe crowded out concerns about disrupted exports from Iran and Venezuela.

INDIA India is the world's third-biggest oil importer.

With output overall rising, supply is ample despite the Iran sanctions now in place, prompting rumblings within the Middle East dominated Organisation of the Petroleum Exporting Countries (OPEC) that renewed supply cuts may be needed next year to prevent a glut.

Russian Federation and Saudi Arabia, top producers in an OPEC-led alliance, started bilateral talks on a return to production cuts next year, Russia's TASS news agency reported, citing an unnamed source.

Meanwhile, the world's top three producers, the United States, Russia and Saudi Arabia are also pumping at or near records.

Zanganeh claimed the Trump administration may have been able to "superficially" bring fuel prices down ahead of the US mid-term elections this week but that there's bound to be a hike in prices in the future. "Opec and Russian Federation may use cuts to support US$70 per barrel", said Ole Hansen, head of commodity strategy at Saxo Bank.

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