Crude Oil Recovers, Extends Gains To 3rd Straight Session

Lloyd Doyle
July 20, 2018

India, vulnerable to United States pressure, has said it would only buy Iranian oil if it is able to get a waiver against sanctions from the United States government. Paying heed to the USA warnings, Japan will slowly cease the oil imports from Iran.

Even higher U.S. production is likely, Rystad Energy said.

The United States uses about 20 million barrels of oil a day, but one-fourth of the oil comes from overseas.

China and India have been top buyers of Iran's oil in Asia. Iran relies upon the export of oil.

Recently Israel's public broadcaster published a recording of Prime Minister Benjamin Netanyahu saying that he was responsible for persuading US President Donald Trump to withdraw from the Iran nuclear deal earlier this year.

The country expects exports to drop by roughly 100,000 barrels per day in August as it works to ensure it does not push oil into the market beyond customers' needs, the kingdom's OPEC Governor Adeeb Al-Aama said. The country's oil revenues also grew from $27.308 trillion in 2015 to $41.123 trillion in 2017. Hyundai Oilbank shipped in 7.6 million barrels or 11.4 percent of its total crude oil imports between January and May this year from Iran.

Regulatory certainty for US oil development is essential to the oil industry's continued success.

Reportedly, banks in China have already tightened restrictions on Iranian clients. China has indicated that it would not honor the US sanctions. This new alliance between Saudi Arabia and Russian Federation has meant that OPEC can have an outsized impact on world oil prices. The president has repeatedly used the social media service to accuse OPEC of artificially inflating oil prices, while demanding behind the scenes that its members boost production to replace production halted by US sanctions on Iran. It is an axiom of politics in the United States that high oil prices produce murder at the polls. They rose 32 cents to $72.16 a barrel on Tuesday, after earlier touching a three-month low.

Strategic Petroleum Reserve. After the Oil Weapon had been unsheathed by the oil-producing countries in 1973, the U.S. government began to hold a Strategic Petroleum Reserve.

The U.S. has added almost 1 million bpd in production since November, thanks to rapid increases in shale drilling. Saudi Arabia's oil production jumped in June by 405,400 bpd compared to May, to reach 10.420 million bpd.

Two days ago US Secretary of State Mike Pompeo had signalled for the first time that his country might consider exemptions from the sanctions for countries as they reduce their dependency on Iranian oil. For decades, the WTI contract based in Cushing, has been the benchmark for US oil prices, but Houston has surpassed Cushing in terms of importance. U.S. Administration is actively considering releasing part of the 660-million-barrel SPR, with options ranging from a test sale of 5 million barrels to a release of as much as 30 million barrels, and even higher if coordinated with other countries.

Other reports by Iphone Fresh

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