Oil rises as USA sanctions on Iran stir supply worries

Oil rallies as Iran sanctions kick in

Oil pumps are seen at sunset outside Vaudoy-en-Brie, near Paris, France April 23, 2018.

Oil prices rose earlier in the trading session after the US sanctions on Iran went into effect, but gains were limited as market participants lacked clear signs on just how much the proposed oil sanctions would affect Iranian crude output, Kilduff said.

European officials have said their governments are considering opening accounts for Iran at their national banks, which could receive oil payments. However, it is rumored to be new sanctions on Iran.

The sanctions target Iran's USA dollar purchases, metals trading, coal, industrial software and its auto sector.

At 0244 GMT, September WTI crude oil futures are trading $68.81, up $0.32 or +0.47% and October Brent crude oil is at $73.58, up $0.37 or +0.51%.

French bank Societe Generale said there was now a "comfortable supply" in physical crude markets, but noted, "Iran sanctions will take another one million bpd off the markets".

US sanctions on Iran's energy sector are set to be re-imposed after a 180-day "wind-down period" ending on November 4.

West Texas Intermediate crude jumped 0.9% to $69.50 per barrel at 10:30 a.m. ET.

Severe thunderstorm warning in effect for southwest Virginia
The Office of the Fire Marshal and Emergency Management recommends that you take cover immediately if threatening weather approaches.

"It is a reality check that this is happening and that Iran's oil exports will be hurt when the oil sanctions hit it in November", chief commodities analyst at Commerzbank Bjarne Schieldrop said.

"You can not order 2 million barrels like ordering a coffee somewhere", Beat Wittmann, a partner at financial consultancy Porta Advisors, told CNBC recently.

WTI had pierced 69 the figure again with a high so far of $69.15bbls.

"Anyone doing business with Iran will NOT be doing business with the United States".

Donald Trump described the new sanctions as "biting" and warned other countries not to do business with Iran in a post on Twitter today. The Saudi production data came as surprise to traders at the start of this week, presuming that Saudi production would have risen in July given the pledges from Russian Federation and the Organization of the Petroleum Exporting Countries where they had supposedly agreed in late June to begin ramping up crude output after more than twelve months of curbing output. "The reports that Saudi Arabia's production actually dropped in July continue to provide support for the market". 9 million bpd this week, based on weekly estimates provided by the EIA.

Traders will now look ahead to the weekly API's Weekly Statistical Bulletin today and then the USA inventory data from the Energy Information Administration.

"Past instances of El Niño have resulted in sharp drops in US residential and commercial heating oil demand and prices", it said.

Related News:

  • Disney's live-action Star Wars series could cost whopping $100M

    Disney's live-action Star Wars series could cost whopping $100M

    Revenue rose 7 percent to $15.23 billion in the period, short of the $15.49 billion expected by four analysts surveyed by Zacks. Old Disney movies and over 5,000 episodes of Disney television shows will fill out the service's offerings.

    Manafort's Former Tax Accountant Fired by Firm After Testimony

    In one email, Manafort wrote "WTF" and "not happy" about tax payments he was going to have to make, Gates said. Gates replied that that was several years ago, and referenced a "relationship".
    Osuna addresses new Astros teammates in closed-door meeting

    Osuna addresses new Astros teammates in closed-door meeting

    We are providing Roberto with the benefit of a great clubhouse and organization as a supportive environment for this fresh start. We are strong believers in protecting the rights of victims and remain committed to having a positive impact on our community.
  • Movies Anywhere can now be linked to your Microsoft account

    Movies Anywhere can now be linked to your Microsoft account

    Back in March, a Microsoft rep said the company was "in discussions with Movies Anywhere about bringing their service on-board". To celebrate this launch, Movies Anywhere is giving away a free copy of X-Men: Days of Future Past when you sync an account.
    Elon Musk considers taking Tesla private as stock jumps

    Elon Musk considers taking Tesla private as stock jumps

    According to the Times, the Saudis recently approached Musk and offered to buy even more Tesla shares, an offer that Musk refused. The firm's shares climbed more than 6% after the tweet, but the Nasdaq later halted trading pending an announcement .
    Ontario government to announce buck-a-beer plan

    Ontario government to announce buck-a-beer plan

    In hopes of getting brewers on board with cheaper beer, Ford announced he is offering incentives to brewing companies. The program will see the government-set minimum price of beer drop from $1.25 to $1.00 before tax and deposit.
  • Final season of House of Cards gets premiere date

    Final season of House of Cards gets premiere date

    On Tuesday morning, the show's official Twitter account announced that the final season would arrive on Netflix on November 2. The series was created by Beau Willimon and is produced by Donen/Fincher/Roth, with MRC as the studio, for Netflix.
    China denies entry to Disney's Winnie the Pooh film

    China denies entry to Disney's Winnie the Pooh film

    The film tells the story of Robin reuniting with Pooh and the gang as an adult and rediscovering his playful imagination. Chinese authorities immediately censored the meme after it became viral on social media.
    Netflix limited series Maniac debuts trailer and key art

    Netflix limited series Maniac debuts trailer and key art

    The teaser of the series got the audience intrigued and this trailer further talks about the plot of the series. Emma Stone plays Annie Landsberg who is fixated on her broken relationships with her mother and her sister.
  • Top Bangladeshi photographer arrested for demo interview

    Top Bangladeshi photographer arrested for demo interview

    Besides, Bangabandhu Sheikh Mujib Medical University was ordered to report on Alam's physical condition by 10:30am Thursday. Bangladesh floats death penalty for road deaths in bid to quell protests, but drivers are not happy with the draft law.
    Elite Dota 2 Team Easily Beat by Advanced AI Bots

    Elite Dota 2 Team Easily Beat by Advanced AI Bots

    These are all people who now or previously play Dota 2 professionally - they're in the 99.95th percentile of human players. Without the ability to build a team it knew how to play, the AI was at a disadvantage.
    Category 3 Hurricane Hector drives west across the Pacific

    Category 3 Hurricane Hector drives west across the Pacific

    Hurricane-force winds extend outward up to 25 miles (35 km) from the center of the storm and tropical-storm-force winds extend outward up to 105 miles (165 km).


Most liked

Mauling time high in the air
Their celebrations were short lived however. "It has to be about the team, just about the team and stick to what works for us". The Crusaders were forced to make 180 tackles against the Lions, with flanker Matt Todd making an extraordinary 30 by himself.

‘Cowboy Ninja Viking’ Movie Stopped In Its Tracks By Universal
She most recently helmed the pilot for HBO's The Deuce, and also has the WWII thriller The Nightingale in development at Tri-Star. Cowboy Ninja Viking may still get underway before the end of the year, but it's unlikely that we'll the movie anytime next year.

Former Shrewsbury Town goalkeeper Joe Hart joins Burnley from Manchester City
Hart, who has played for England 75 times, made almost 350 appearances for City, winning two Premier League titles and one FA Cup.

Pogba's agent in Manchester to unlock Frenchman's move to Barcelona
It is understood that the hard relationship between Mourinho and his 25-year-old star has become tense once again, however. According to Sky in Italy , Manchester United have rejected a sensational swap deal for Paul Pogba by Barcelona .

HGTV Is Going to Save the Original Brady Bunch House
The secret corporate buyer who outbid Lance Bass for the iconic " Brady Bunch " home is a mystery no longer. After the buyer was revealed he changed his tune, saying he knew HGTV would do "the right thing".

Trump administration finalizes tariffs on $16 billion in Chinese goods
Trade Representative Lighthizer "to identify $200 billion worth of Chinese goods for additional tariffs at a rate of ten percent". The Semiconductor Industry Association expressed disappointment at USTR's decision to keep the sector on the tariff list .

Israel ‘welcomes’ murder of Syrian scientist - but denies any involvement in assassination
Aziz Asbar, who was working to update Syria's missile stockpile and make it more accurate, died in an explosion in the city of Masyaf on Saturday.

Imran vows all appointments in ‘Naya Pakistan to be based on merit’
The notification of Asif's victory was withheld after a rival candidate petitioned for a recount. Mr Khattak has already tendered an apology through a video message over his act.

Rand Invites Russian Delegation to Capitol Hill
The senator released a statement explaining the importance of a continued dialogue with Russian Federation . Paul's visit is the second time a US political delegation has visited Russian Federation within a month.

Ruby Rose Cast as 'Batwoman' - Lesbian Superhero on The CW
On TV, Batwoman first appeared in animated series Batman: The Brave and the Bold, which premiered on Cartoon Network in 2008. The DC Comics character is set to make her debut during this year's Arrowverse crossover event, which was announced in May.

Liverpool 3-1 Torino: Reds end pre-season with victory at Anfield
Fabinho , who had scored 16 in a row from the spot for AS Monaco, sent the penalty several yards wide. "Maybe we will do some magic things with the formation on Tuesday".

Disney wants to reunite all Star Wars streaming rights, report says
Bloomberg reports Disney is trying to regain the broadcasting rights so it can offer the films on its upcoming new video service. This means that there is a possibility that Disney's streaming service will not include the original Star Wars movies.

Everton's Lucas Digne explains 'never walk alone' tattoo on chest
I hope to see him here but I don't know really! I am loving the fact I am coming here. "He's a good player and a good guy". I progressed a lot as a player and as a person by playing with the best players in the world.

Hailstorm leaves 2 animals dead, 14 people injured at Colorado zoo
The Cheyenne Mountain Zoo suffered extensive property damage in Monday afternoon's (local time) short but intense storm. A third animal - a vulture - was initially reported dead, but later turned out to be severely injured.

‘We Have Plenty Of Water’ For Fighting California Wildfires
The second portion of Trump's tweet , that California "Must also tree clear to stop fire spreading!", is also confusing. The two fires burning a few miles apart and known as the Mendocino Complex are being treated as one incident.