Oil prices rise as United States renews sanctions against Iran

Saudi Arabia Crude Flows to U.S. Surge While Venezuela Output Declines

Starting in July, South Korea is halting Iranian oil imports for the first time since 2012 amid pressure from the United States to discontinue purchases from Iran.

Oil prices rose on Tuesday as the US reintroduced sanctions against major crude exporter, Iran, tightening global markets.

Donald Trump described the new sanctions as "biting" and warned other countries not to do business with Iran in a post on Twitter today.

In other news, USA drillers cut two oil rigs in the week to August 3, bringing the total count down to 859, General Electric's Baker Hughes energy services firm said on Friday.

"It certainly is a reminder to everyone that the U.S.is serious about sanctions, and it's doubtful they will grant waivers", said John Kilduff, partner at Again Capital Management in NY.

The price for Brent crude oil, the global benchmark, was up 1.22 percent as of 9:15 a.m. EDT to $74.65 per barrel.

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%.

Oil prices rose after the sanctions went into affect, 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.

Exports to China rose to 799,452 bpd in July from 722,100 bpd in June, while Iranian oil sales to India increased by more than 40,000 bpd from June to 706,452 bpd in July, S&P Global Platts data shows.


"The market continues to price in geopolitical risk from the reimposition of sanctions by the US on Iran", said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.

Oil rose on Monday after Saudi crude production unexpectedly fell in July and U.S. drilling appeared to slow, although the price is still nearly 10 percent below its 2018 high of more than $80 a barrel.

That came despite a pledge by the Saudis and top producer Russian Federation in June to raise output from July, with Saudi Arabia promising a "measurable" supply boost. Overnight, the price of oil will move on data on U.S. crude oil and gasoline inventories from the American Petroleum Institute and on Wednesday on data from the U.S. Energy Information Administration.

"The price may also be finding support from oil transport infrastructural problems in the USA", said Commerzbank analysts in a note".

Also supporting prices were a weakened dollar, McGillian said.

US crude stockpiles were expected to have dropped 3.3 million barrels last week.

Still, with Russian Federation, the United States and Saudi Arabia now all producing 10 million to 11 million bpd of crude, just three countries now meet around a third of global oil demand.

This mostly impacts demand for power fuels such as thermal coal and natural gas.

Related News:

  • Dead fetus found on commercial plane at LaGuardia Airport

    Dead fetus found on commercial plane at LaGuardia Airport

    The account later tweeted to a frustrated customer that planes may be delayed "due to the medical needs of a customer". American Airlines also sent out an official statement, but offered no details about what had been found.
    NASCAR CEO on leave of absence after reported DWI arrest

    NASCAR CEO on leave of absence after reported DWI arrest

    Brian France replaced his father, Bill France Jr., who ran NASCAR for 31 years before turning leadership over to his son. France will be charged with DUI and criminal possession of a controlled substance in the 7th degree, TMZ reported.
    Paul Manafort's ex-aide Rick Gates testifies at trial on Cyprus accounts

    Paul Manafort's ex-aide Rick Gates testifies at trial on Cyprus accounts

    The defense signaled in opening arguments that they'll try to pin the tax and bank fraud crimes at issue in this case on him. But while Laporta acknowledged that she regularly communicated with Gates, she said she believed Manafort was in the know.
  • Celtic to sign Arzani 'within days...'

    Celtic to sign Arzani 'within days...'

    Danny Mullen put the Ladbrokes Championship winners ahead after eight minutes but Elton Ngwatala levelled up nearly immediately. Goals from defender Scott Boyd and the on-loan Bournemouth forward Ndjoli gave Steve Clarke's men victory.
    Cocaine deaths treble as purity rises and prices fall

    Cocaine deaths treble as purity rises and prices fall

    Some 3,756 deaths involving legal and illegal substances occurred previous year - the most since comparable records began in 1993. But statisticians argued last year's death rate remains similar to 2016, when there were 3,744 deaths related to drug poisoning.
    Scientists describe what a 'hothouse Earth' might look like

    Scientists describe what a 'hothouse Earth' might look like

    An Irish climate change academic has warned of "runaway warming" if global temerature increases are not maintained below 2C. The world is on the brink of entering a potentially fatal phase of climate change , according to new research.
  • Del Potro, Fognini enter Los Cabos Open final

    Del Potro, Fognini enter Los Cabos Open final

    Cameron Norrie's great run in Los Cabos came to an end as he lost in the semi-final to the No.2 seed Fabio Fognini . He also won a tournament in Acapulco. "But anything can happen in the final, so I will try to do my best".
    German couple convicted of rape, online sale of young son

    German couple convicted of rape, online sale of young son

    They charged several thousand euros (dollars) for each instance of abuse, filmed the acts and posted them on the darknet. The boy was taken out of the family home in March previous year , but was sent back weeks later by a local court.
    Stan Kroenke Q&A: What does the takeover mean for Arsenal?

    Stan Kroenke Q&A: What does the takeover mean for Arsenal?

    The Arsenal Supporters' Trust have expressed concern over Stan Kroenke's plans to complete a takeover of the club. He tweeted: 'Incredibly sad day for so many of our fan shareholders that that no longer own a part of this club.
  • Osinbajo sacks DSS Boss, Lawal Daura

    Osinbajo sacks DSS Boss, Lawal Daura

    This, according to him, is necessary to get to the root of the matter so that those responsible could be identified and punished. Daura has been directed to hand over to the most senior officer of the State Security Service until further notice . " Mr.
    Karunanidhi passes away, Tamil Nadu government declares public holiday on Wednesday

    Karunanidhi passes away, Tamil Nadu government declares public holiday on Wednesday

    The movie did not just have an vast impact on Tamil cinema, but also enormously influenced Tamil Nadu's political scene. He was also instrumental in constructing a 133-foot-high statue of Thiruvalluvar, the famous poet, in Kanyakumari.
    Ola to launch in Britain as Uber rivalry heats up

    Ola to launch in Britain as Uber rivalry heats up

    Aside from Uber, Ola will be up against the rival ride-hailing app Gett, and the London-focused firms MyTaxi, Kabbee and Addison Lee.


Most liked

Dubai tourist racks up £36k in speeding fines in rented supercar
The unidentified man reportedly broke the speed limit in a rented Lamborghini Huracán on one of the city's busiest roads. The dealership believe the driver is at fault and needs to pay the impound fines, according to the report.

Boris Johnson told to apologise for burka jibe
It is not to be confused with the hijab, which leaves the face uncovered, or the niqab, which leaves the eyes exposed. She said her fellow Muslim women are not "a convenient political football to be used by old Etonians".

Alvaro Morata will wear the No 29 shirt for Chelsea this season
And despite such woes, the 25-year-old is expected to lead the line for Chelsea in the coming season. That's because Morata has made the decision to swap his number nine shirt to the number 29.

Ruby Rose cast as Batwoman on The CW
Rose, a genderfluid lesbian and activist for the LBGTQ community, wrote, produced, and starred in the short film Break Free . In a city desperate for a savior, Kate must overcome her own demons before embracing the call to be Gotham's symbol of hope.

Kim Kardashian Wants to Change Chicago West's Name
So I unofficially instagrammed Chi Noel and I was like I'm doing this because I want her middle name to be Noel'. I swear I was like God is going to be like here is your twin so you feel so connected.

Microsoft Movies & TV now supports Disney’s Movies Anywhere service
With Movies Anywhere, users would not have to care where they purchase their movies as it would be synced between all services. In addition, consumers are also able to stream movies from any linked retailer through the apps of any other linked retailer.

Two blazes form California's largest wildfire in history
The SAFD hopes its crew will help in the fight, adding to the more than 4,700 fire personnel who are now battling the Carr Fire . Jerry Brown had written in his request to Trump for a presidential major disaster declaration .

Two More Days Of Heatwave Conditions Before We Can Cool Down
She said: "This means there is an increased likelihood of warmer-than-average temperatures and below-average rainfall". However, by the start of September, the weather pattern is expected to slow, resulting in "settled" conditions.

Will ‘Halo’ Be Showtime’s ‘Game Of Thrones’? - TCA
I think there's been one iconic franchise in my opinion in the history of television in that category and that's Star Trek . In the interview with GameSpot , Levine said , "It is futuristic space-based science fiction, it is not fantasy".

Love Island victor Dani Dyer reunites with her famous family
She wasn't planned, obviously, but I don't regret a... "It's awful being apart from each other". Because you've lived it, we're [not] going to watch it from start to end - that won't happen.

UK July Halifax house price index +1.4% vs +0.2% m/m expected
British house prices spiked in July, despite other signs of softness in the market, mortgage lender Halifax said on Tuesday. Despite the upbeat figures, however, Russell Galley, managing director at Halifax, said housing activity remained "soft".

Unveiling of provincial buck a beer scheme expected today
Ontario Premier Doug Ford rolled out the provincial government's buck-a-beer plan at a brewery early today in Picton, Ont. The price floor will affect beer that contains an alcohol percentage below 5.6%.

Hurricane Hector is headed toward Hawaii, where a volcano is erupting
At least 700 homes have been destroyed, authorities estimate, and thousands of people have been displaced. Hurricane Hector updated track as of 11 p.m. on Sunday, Aug. 5, 2018.

British Open: Georgia Hall claims first major victory
Yeah, she is from here and everyone rooting for her. "It was my goal when I was 9 to win the British Open". Golf-loving Wayne long saw this coming.

NJ woman helps man short on cash, finds out he's Keith Urban
I'm a celebrity with my FB friends now! "And I just fell apart, fell apart and he was gracious", Reed said. Reed's photo with Urban has since gone viral on Facebook after it was posted on the city's local page .