Oil prices fall as Iran nuclear deal retains support

US oil prices climbed above $70 per barrel on Monday for the first time since November 2014. Sergei Karpukhin  Reuters

Oil prices could rise because of the decision by the United States to withdraw from the Iranian nuclear agreement, two analysts said on Tuesday.

While there are fears that a nuclear escalation between Iran and Saudi could potentially take place, any such actions are incremental, and long- term prospects, giving markets plenty of time to adjust.

The HPCL management has indicated that in case crude prices continue to rise, consumers will have to bear a portion of the cost.

Dubai was victimized by the decision.

But what will the economic impact be on Iran and its trading partners?

"We will be instituting the highest level of economic sanction".

Trump repeated his tough stance on the deal, saying it had failed to prevent Iran from developing nuclear weapons or supporting terrorism in the region.

Instead, he cited a cache of Iranian documents made public by Israel on April 30 that he said showed Iran's leaders lied when they denied ever pursuing a nuclear weapons project.

But the interest lied elsewhere.

Higher oil prices boost the USA economy and employment and increase taxes the federal government collects, according to Zanganeh.


Oil hit its highest level in 3.5 years as investors anxious that Trump's decision would increase risks of conflict in the Middle East and curtail oil supplies in a tight market. Goldman Sachs said in a note that it was unclear if a million bpd in exports would be at risk as it was from 2012 to 2015.

Crude prices fell in a see-saw session on Friday, retreating after early gains as it looked likely that USA allies would push to maintain a deal with Iran, which could keep that country's crude exports on global markets.

Previous sanctions limited production to 1 million bpd for exports.

Production shortage in Mexico and Venezuela in the past few months has further reduced global crude supplies and pushed up oil prices.

Read: Is Egypt coming down hard on Careem and Uber? "United States shale producers turn the taps back on the longer prices remain above break-even", said Mr Kerry Craig, global market strategist at J.P. Morgan Asset Management.

"The rest is likely due to heightened tensions with Iran and other supply shocks and the return of USA sanctions could crimp Iranian oil exports", said Bloomberg.

The West Texas Intermediate (WTI) for June delivery lost 1.67 USA dollars to settle at 69.06 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery was erased 1.32 dollars to close at 74.85 dollars a barrel on the London ICE Futures Exchange.

US West Texas Intermediate (WTI) crude futures also marked a November 2014 high, at US$71.84 a barrel, before edging back to US$71.78 a barrel. "If reimposed, companies and countries will have 180 days to reduce their consumption of Iranian oil or face penalties from the U.S.".

This - along with an output cap by Russian Federation and OPEC, rising USA demand and an improving economy - has helped send the price of oil to highs not seen since late 2014, though profit-taking saw both main contracts retreat yesterday.

United States crude inventories C-STK-T-EIA fell by 2.2 million barrels in the week to May 4, to 433.76 million barrels, according to the Energy Information Administration (EIA), slightly above the 420 million barrels five-year average level.

Related News:

  • Cannes 2018: Aishwarya Rai Bachchan stuns all, once again

    Cannes 2018: Aishwarya Rai Bachchan stuns all, once again

    The L'Oreal Paris brand ambassador was made up with a sensual Infallible Pro Matte Liquid lipstick 308 Shanghai Scarlet. Aishwarya chose to begin her Cannes sojourn with a attractive powder blue and pink sequinned dress.
    Area postal carriers hosting food drive

    Area postal carriers hosting food drive

    Employees at the insurance company collected and donated 667 pounds of non-perishable food items, she said. Residents were encouraged to leave non-perishable, non-breakable and non-expired food at their mailboxes.
    Iran nuclear deal: what does US withdrawal mean for the Middle East?

    Iran nuclear deal: what does US withdrawal mean for the Middle East?

    Iran also could be wary of military entanglement at a time when it is trying to salvage the worldwide nuclear deal. The Observatory said the attacks killed 23 fighters, including five Syrian soldiers.
  • Nawaz Sharif admits to Pakistan's hand behind 26/11 Mumbai terror attack

    Nawaz Sharif admits to Pakistan's hand behind 26/11 Mumbai terror attack

    Union Minority Affairs Minister Mukhtar Abbas Naqvi told ANI, "Pakistan is exclusively responsible for 26/11 terrorist attack". Nine of the attackers were killed by the police while the lone survivor Ajmal Kasab, was arrested and hanged after a trial.
    Pakistani authorities bar USA  envoy involved in mishap from leaving country

    Pakistani authorities bar USA envoy involved in mishap from leaving country

    Consequently, two riders of the bike suffered injuries and one of them, 22-year-old Ateeq Baig, succumbed to his injuries. A senior Pakistani Intelligence official later told The New York Times that Hall was questioned by police in Islamabad .
    Iran plans to OVERWHELM and DESTROY Israel, former general warns

    Iran plans to OVERWHELM and DESTROY Israel, former general warns

    Germany is ready to help 120 of its firms to keep doing business with Iran, German Economy Minister Peter Altmaier said on Friday. Everyone is now focused on saving the deal, and Europe is particularly interested in saving its business interests in Iran.
  • Dominic Thiem [5] v Alexander Zverev [2] | Preview & Prediction — ATP Madrid Final

    Dominic Thiem [5] v Alexander Zverev [2] | Preview & Prediction — ATP Madrid Final

    Giant-killer Dominic Thiem is through to the final of the Madrid Open after defeating Kevin Anderson . Nadal ended 2017, in which he took his grand slam tally to 16 by winning the French and U.S.
    Bangabandhu Satellite-1 Mission

    Bangabandhu Satellite-1 Mission

    The whole point of reusability - multiple flights with swift turnarounds, airplane-style - is to shave launch costs. "Crazy hard. "I believe the launching of satellite-1 will bring revolutionary changes in the field of broadcast and telecommunications".
    Arsene Wenger Predicts European Super League Will Eventually Replace EPL

    Arsene Wenger Predicts European Super League Will Eventually Replace EPL

    Wenger was in unusually reflective mood as he prepared for the final match of his Arsenal tenure at Huddersfield Town tomorrow. It will always be special for me.
  • Karnataka Exit Polls Divided Over Result!

    Karnataka Exit Polls Divided Over Result!

    Second, farm distress has become a political issue and the rural-urban stratification of the Karnataka vote will be important. The India Today-Axis MyIndia poll gives the Congress seats in the range of between 106-118, with 112 seats as the average.

    Google will remind the user to stop watching videos on YouTube

    So if you have Netflix casting to a TV screen and nothing else running on your phone, all of that watchtime doesn't get logged. The Actions and Slices app features may be hard to grasp at the moment because there aren't many examples to point to.
    Simpson extends huge Sawgrass lead

    Simpson extends huge Sawgrass lead

    Woods insisted that somebody would go lower later in the day, but only Dufner even got within one of their numbers. Dustin Johnson , who shared the first round lead with Simpson, among others, is alone in third, nine shots back.


Most liked

Man City want Aguero and Sterling to stay, insists Pep Guardiola
Before becoming Manchester City manager in 2008, Mark Hughes was unbeaten against them in the Premier League (W4 D4 L0). The Portuguese has featured in all but four of City's 56 games this season but only 27 of them have been starts.

Vitor Belfort retires after brutal KO loss at UFC 224
Machida took to his post-fight interview and called out Bisping, so we'll have to see if the fight actually materializes. Here is how the MMA community reacted to Machida's awesome knockout and the retirement of a legend in Vitor Belfort.

Petrobras (PBR) Expected to Announce Quarterly Sales of $25.75 Billion
The Petroleo Brasileiro S.A. - Petrobras has shown a five days performance of 18.06% and thirty days performance stands at 13.12%. Maximum and minimum EPS estimate for the current quarter is projected at $0.45 and $0.23, respectively, according to 6 analysts .

Shaftesbury PLC (LON:SHB) Analyst Ratings as of May 11, 2018
President Energy PLC engages in the exploration, evaluation, and production of gas and oil properties primarily in South America. Its down 0.23, from 1.37 in 2017Q3. 41 investors sold all, 90 reduced holdings as Patisserie Holdings plc ratio fall.

May insists she can be trusted to deliver Brexit despite cabinet disarray
They say: "The local election results show that the Government is being supported to deliver a sensible, non-fudged Brexit ". One group will consider a "customs partnership" whereby the United Kingdom would collect tariffs on behalf of the EU.

Cooper Says Dern Is A "Disgrace", But Will Take Catchweight Fight
Make what you will of her weigh-in on Friday, but on Saturday night Mackenzie Dern put her skills on display. Dern missed weight by seven pounds, which is why this match-up wasn't contested at strawweight.

Chinese star sprinter Su: Diamond League result beyond expectation
World record holder of Pole Vault, Lavillenie Renaud of France beat Lisek Piotr and Chinese athlete Xue Changrui with 5.81 meters. And Prescod believed the miserable conditions worked in his favour after hours of training in the rain back home.

Are Analysts Bullish Manx Telecom Plc (LON:MANX) After Last Week?
The stock of RSA Insurance Group plc (LON:RSA) has "Buy" rating given on Monday, February 5 by Goldman Sachs. The Wilmington (LON:WIL)'s stock had its "Buy" Rating revealed to clients in an analyst report on 10 May.

Lenovo Z5 Could be Lenovo's True Bezel-Less Phone
The Z5 will be launched to take on the likes of Xiaomi's Mi Mix 2S, Mi Mix and other phones with a comprehensive display. What was missing was the name of the mobile and now the organization has affirmed that it will be called as Lenovo Z5 .

Israel v Iran: Are they heading for a war?
But before Thursday, Iran had not retaliated, seemingly handcuffed while it awaited Trump's decision on the nuclear accord. Most of the enemy rockets landed in Syrian territory, though four were neutralized by the Iron Dome missile-defense system.

Leo makes history as Leinster clinch European Champions cup
Iribaren nailed his third penalty five minutes into the second period as Racing tested the Irish defence. Offside in midfield and Nacewa stepped up to, once again, draw his Irish side level.

Oklahoma governor vetoes gun Take Charge in Conquer NRA
With this action, Oklahoma has the negative distinction of being the only state [s] to sign an anti-LGBTQ bill into law this year. When announcing the veto she said, "I believe the firearms laws we now have in place are effective, appropriate and minimal".

Walmart may put $ 3 billion more in Flipkart, take over 85% stake
Reuters formerly noted that Google-parent Alphabet was in talks to spend £ 3 billion to get a roughly 15% stake in Flipkart. SoftBank Chief Executive Masayoshi Son said that their investment from Flipkart had grown to nearly $4 billion.

Ex-PM Najib Razak banned from leaving Malaysia
The Amanah president responds to Rafizi Ramli who questioned the announcement of key Cabinet portfolios for Amanah, PPBM and DAP. I apologise for any shortcomings and mistakes, and I thank you, the people, for the opportunity to lead our great nation.

Morris on guarding LeBron: 'I'm the best defending him, other than Kawhi'
It was my first time being in the playoffs, being able to go against one of the best players in the league, if not the best. Danny Ainge has done a good job of getting guys in that fit that mold of Celtics basketball and they've been playing well.