Oil markets firm amid OPEC cuts, Iran sanctions

15 May, 2018, 22:41 | Author: Brooke Harris
  • Oil slips as Opec seen able to offset impact from Iran sanctions

Yet, the biggest story in oil markets this year may well take place far from the much-publicized tensions in the Middle East - namely China's ever-growing oil demand.

The OPEC report, published Monday, showed Venezuelan production at its lowest in decades and said the global oil glut had been virtually eliminated.

The so-called Saudi Vision 2030 is aimed at generating more growth from the non-oil sector. Total global demand is now seen at 98.85 million bpd. Production rates are strong, but so too are US demand and fuel exports.

Markets were also held in check by a rise in US drilling for new oil production.

Mousavi, whose NIOTC is tasked with controlling Iran's oil export facilities, went on to say that Iran now had no oil stored in its tankers, which means that the Islamic republic goes on selling its oil reserves, with exports as of March 2017-2018 hitting roughly 800 million barrels, IRNA reported.

In the first four months of this year, South Korea's intake of Iranian oil dropped 34 percent to 4.69 million tonnes, or 286,308 bpd, versus about 7.1 million tonnes over the same period a year ago, the data showed.

The report is the last one before the oil ministers' meeting in Vienna to discuss the oil production ceiling two weeks later.

Heitkamp undecided on Haspel; says McCain's opposition 'matters'
With Warner's support, she is expected to have the backing of all eight committee Republicans and at least two of the seven Democrats.

The Saudis themselves reported total production of 9.868 million barrels a day in April, down by about 39,100 compared to March.

Some oil analysts have said they expect Iranian crude exports to fall by as little as 200,000 barrels per day (bpd), while others put the figure closer to 1 million bpd. Steady refining margins and backlog cargoes to some independent refiners contributed to the record import volumes.

"In the short term, higher oil prices will probably be sustained", said John Velis, macro strategist at State Street Global Markets, noting multiple reasons for the price support.

- Global oil supply is tightening.

Oil held near $71 a barrel on heightened political risks in the Middle East following unrest in Gaza and the return of sanctions against Iran.

But it is unclear how hard the sanctions will hit Iran's oil industry. As a result, crude oil is likely to undergo a short-term correction. Crude oil prices moved up during European trading hours and continued to rise during U.S. trading hours.

"Plus we see a high likelihood of OPEC working with Russian Federation in 2019 to set a floor on oil prices", analysts wrote in their report.

Recommended:



Popular

5-year-old hospitalized after bear attack outside Colorado home
She's the only girl. "She came out. she yelled at the animal", Colorado Parks and Wildlife spokesman Mike Porras told Fox31. On Monday, one day after the attack, the department announced it had killed the bear suspected of attacking the girl .

Iran official says Europe has 60 days to give nuclear 'guarantees'
Foreign Minister Heiko Maas said, however, that it could be hard to protect European firms from any fallout from the US decision. Iran's Supreme Leader Ayatollah Ali Khamenei has called the U.S. withdrawal "impudent" and "worthless".

Dallas School Board okays $38.6 million preliminary budget
The hotspots will be divided between East, West, and Expo high schools as well as the middle schools based on need. The board would consist of three members of the School Board , two members of the City Council and the Mayor.

Jay Ajayi Sued for Trashing LA Mansion; Accused of Pushing Home Owner
In seven games with Eagles, Ajayi accumulated 408 rushing yards and one touchdown on 70 carries. He is on the final year of his rookie contract, which will pay $705,000.

Trump and Xi Move To Resolve Shutdown of ZTE Corp
Increasing U.S. exports of liquefied natural gas could also be an area where the two countries could agree, he said. ZTE reached a settlement in March 2017 for violating USA export laws and paid penalties totaling $1.19 billion.

Bethesda releases first gameplay trailer for Rage 2
If you like open-world FPS titles set in a dystopian universe, then Rage 2 looks to be right up your alley (and mine, too ). We will play for Walker, the last Ranger of the Badlands, which is a hard path of struggle against oppressive Government.

Facebook suspends 200 apps for misusing data, privacy probe continues
MPs have again criticised Facebook for submitting "insufficient" evidence to a parliamentary inquiry about how it handles data. Earlier, it was revealed that the British consulting firm Cambridge Analytica misused data of 87 million app users.

Uber will no longer force victims of sexual assault into arbitration
These agreements can help companies avoid costly, protracted legal disputes but they also tend to protect bad behavior. Uber is not the first major tech company to announce this change: Microsoft announced a similar move in December 2017.

Germany Reacts to Ozil, Gundogan For Picture Taken With Erdogan
Therefore, it is not a good thing that our internationals have let themselves be exploited for his election campaign stunt.

Christie Brinkley Uptown Girl Gettin' Down with Stormy Daniels' Lawyer
Brinkley previously claimed Trump had made advances on her when he was still married to first wife Ivana. While both Brinkley and Avenatti are single, it is likely they bonded over President Trump.