Oil eases, but Iran sanctions keep Brent above $80 a barrel

The coalition of roughly two dozen exporters has been limiting its output since January 2017 in order to end a punishing oil price downturn that bankrupted hundreds of American oil companies and heaped financial pressure on crude-producing nations.

The WTI Crude Oil market rallied during trading on Tuesday, but it seems to be struggling with the idea of $73 a barrel. "It's good for peace and it's good for the shape of the global price of oil".

According to the Goldman analysts, led by Damien Courvalin and Jeffrey Currie, production from other OPEC producers and Russian Federation will offset losses out of Iran.

It could cause Washington to take extraordinary steps, including the use of the Strategic Petroleum Reserve, to cool down the crude oil and other fuel prices ahead of the US mid-term elections.

USA officials say they are ramping up pressure on allies and adversaries alike with a goal of shutting down all Iranian oil and gas exports by November 4, following Mr. Trump's decision to pull out of the global nuclear accord with Tehran in May.

Mr. Rouhani also did not rule out talks, but a change in USA policy will be needed first.

The so-called "OPEC+" group, which includes non-OPEC members such as Russian Federation, met over the weekend but did not decide to boost output.

This could result in the price of oil rising to $100 per barrel. The pending loss of Iranian supply has been a major factor in the recent surge in crude prices.




"If he wants the price of oil not to go up and the market not to get destabilized, he should stop unwarranted and disruptive interference in the Middle East and not be an obstacle to the production and export of Iran's oil".

"We're on the verge of some significant volatility in Q4 2018 because depending on the severity and duration of the Iranian sanctions, the market simply does not have an adequate supply response for a 2 million barrel a day disappearance of oil from the markets", Jaeggi said.

"After the weekend's meeting, the voices of those who foresee 100 dollars a barrel and compare the current backdrop to the 2007/2008 bull run are getting louder", said PVM Oil Associates strategist Tamas Varga.

"We are not going to put up with it, these awful prices, much longer".

Most of the potential supply shortfall has already been priced into the contract, Again Capital's Kilduff said.

"As a result, we expect Brent prices to stabilize back in their $70-80/bbl range into year-end", wrote the analysts.

Release of U.S. crude data will be watched closely by oil investors going forward. "Trump blames OPEC for what he has created and caused: the rise of the price of oil and disturbance in the market", Zanganeh said.

Recommended News

  • Delta blames 'technology issue' for ground stop

    Delta blames 'technology issue' for ground stop

    Earlier the company issued a groundstop as its IT teams worked to address a technology issue impacting some of its systems. Eastern time that its crews had "restored all IT systems after a technology issue briefly affected some of our systems".
    Versace on verge of sale to Michael Kors

    Versace on verge of sale to Michael Kors

    Versace had revenue of €686m euros and returned to profit in 2017, according to figures provided by the company. Givi in turn is half-owned by Allegra Versace Beck, daughter of Donatella and niece of late founder Gianni.
    Tiger Woods sends fans into meltdown with astonishing eagle

    Tiger Woods sends fans into meltdown with astonishing eagle

    Missed a couple putts inside 6x feet, but I'm not complaining at all, it was a great round". Woods opened his round with a bogey but fought back with two front-nine birdies.
  • Meghan Markle stuns Britain by shutting her own auto door

    But her simple gesture sparked a huge debate on social media about whether she broke royal protocol by closing her own auto door. But some royal watchers reckon that Meghan is purposefully choosing black ensembles in a bid to stay out of the limelight.
    Briefly: Nuclear deal parties lay out plan to stand up to US

    Briefly: Nuclear deal parties lay out plan to stand up to US

    The EU, US allies, and the worldwide nuclear watchdog, IAEA, maintain that Iran continues to abide by the terms of the agreement. Earlier this year, President Donald Trump pulled the USA from the 2015 Iran nuclear deal and re-imposed sanctions.
    Patriots almost  traded Gronk to Lions before draft

    Patriots almost traded Gronk to Lions before draft

    The tight end explained his reasoning, and it was quite simple: He didn't want to run routes for anybody but Tom Brady . And after the loss, Gronkowski confirmed the report - and all of the other ones, even - as being the truth.
  • Luka Modric wins Fifa Best Player 2018 Award

    Luka Modric wins Fifa Best Player 2018 Award

    However, the awardees were selected based on voting from national team coaches and captains as well as a number of journalists. Modric , 33, said he would happily give up his individual honours for the World Cup title.
    Tropical Storm Kirk of 'immediate concern' to BVI

    Tropical Storm Kirk of 'immediate concern' to BVI

    Leslie is only moving west at about 3 miles per hour and isn't expected to move very far in the next two days, forecasters say. NHC forecasters say that an even faster westward motion across the deep tropical Atlantic Ocean is expected through Tuesday.
    Jimmy Garoppolo carted off as 49ers fall to Chiefs

    Jimmy Garoppolo carted off as 49ers fall to Chiefs

    Before long, Garoppolo was wheeled to the locker room on the back of the cart, with the team anxious about a left knee injury. Obviously, feel for him personally. "I knew that from the day we met, when we got drafted together".
  • 'Miracle of Medinah' was where back trouble started, admits Tiger Woods

    'Miracle of Medinah' was where back trouble started, admits Tiger Woods

    The next group of five players are at 4 under, all the way down until the final five players in the 30-man field are at even par. The Ryder Cup gets under way in two weeks time as Europe and U.S. go to battle at Le Golf National in Paris.
    Gold miners Randgold and Barrick agree $18bn all-share merger

    Gold miners Randgold and Barrick agree $18bn all-share merger

    Canada's Barrick Gold is buying Randgold Resources, creating the world's biggest gold miner with a value of about $18bn (£14bn). The new company will keep the Barrick name and be listed in NY and Toronto, while Randgold's London listing will be cancelled.
    Salah strike caps off best start in Liverpool history

    Salah strike caps off best start in Liverpool history

    He headed home Liverpool's second, after Xherdan Shaqiri's deflected cross resulted in Wesley Hoedt's own goal, which was his first anywhere since November.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.