Health Care

Oil prices rise after Trump pulls out of Iran deal

Oil prices rise after Trump pulls out of Iran deal

Oil prices jumped nearly 3.5 per cent this week as USA plans to impose fresh sanctions on Iran, the world's fifth biggest producer, fuelled fears of a further squeeze on supplies.

Iran increased its oil production by 1 million barrels per day after sanctions were lifted back in 2016.

The price for Brent crude oil was down 0.1 percent to $77.13 per barrel as of 9:15 a.m. EDT.

In the days of the USA withdrawal from the Iran nuclear deal, Iran's European customers continue to buy Iranian oil and are in no immediate rush to replace volumes, but some refiners and traders have flagged financing issues as having the potential stop to crude trade with Iran.

South Korea's Ministry of Trade, Industry and Energy said it planned "to minimize the damage" to its companies, adding it would seek an exemption from sanctions.

Iranian Oil Minister Bijan Namdar Zanganeh said Donald Trump's decision on abandoning the nuclear deal is not going to have a great impact on Iran's oil, gas and gas condensate exports and revenue, IRIB reported on Friday.

The sanctions would aim to limit global trade of the oil producer's crude.

European buyers are not in an immediate rush to replace Iranian supplies due to that wind-down period, with sanctions expected to kick in in November. Some of that oil now will be pulled from the market, experts project.

Ford Halts F-150 Truck Production Due to Parts Shortage
But the most significant impact was felt by Ford, whose F-150 full-size pickup is the best-selling vehicle in the United States. A fire at a Ford supplier has put production of its most important vehicle, the F-150 pickup truck, at risk.

Analysts' estimates of the possible reduction in Iranian crude supplies as a result of any new USA sanctions range from 200,000 bpd to 1 million bpd.

Japan and South Korea will likely work to wind down Iranian crude imports to comply with USA sanctions. It will likely maintain its current import levels, around 500,000 bpd, along with state-backed insurance for oil shipments, unless Europe follows the U.S.in applying a new round of restrictions.

"China is the largest commodity producer in the world and the largest commodity consumer in the world, so it would make sense that Chinese futures that are close to the areas of supply and demand would be a more natural benchmark than the USA markets", said Marwan Younes, founder and chief investment officer of Massar Capital Management in NY. Yet analysts say Saudi Arabia would like to keep prices rising ahead of the IPO of its state-owned oil giant Saudi Aramco.

During the last round of sanctions, India enjoyed waivers allowing limited Iranian oil imports paid for in rupees instead of USA dollars. The deal, which called for the curbing of Iran's nuclear programme, paved the way for the lifting of global sanctions against the country. These days, that national average has jumped to $2.81 per gallon.

Saudi Arabia said it would work with other producers to lessen the impact of any shortage in oil supplies.

Strong crude gains on Wednesday drove up prices of petrochemical feedstock naphtha in Asia to a fresh four-year high.

Iran's Quds Force, which is fighting in Syria alongside the government, targeted Israeli Defense Force positions with 20 rockets, according to a Twitter post by IDF spokesman Jonathan Conricus.

The global oil market is finely balanced, with top exporter Saudi Arabia and No.1 producer Russian Federation having led efforts to curb oil supply to prop up prices.


  • Trump Says Drug Ads Should Reveal Costs

    Trump Says Drug Ads Should Reveal Costs

    Health Secretary Alex Azar said the Food and Drug Administration would immediately examine requiring that information in TV ads. Drug companies spent $229 million on lobbying since the beginning of 2017, according to the Center for Responsive Politics.
    Attacks in Afghan capital kill 5, wound 16

    Attacks in Afghan capital kill 5, wound 16

    The first bomber struck a police station in the western part of Kabul, according to Interior Ministry spokesman Najib ISIS. Afghan security personnel inspect at the site of a suicide attack, in the center of Kabul, Afghanistan, on Wednesday.
    'Everyone Thinks' I Deserve Nobel Peace Prize

    'Everyone Thinks' I Deserve Nobel Peace Prize

    DONALD TRUMP has a chance to make himself a worthy candidate for the Nobel Peace Prize , Boris Johnson claimed yesterday. It said it had received 329 valid nominations for the 2018 prize, which is to be awarded in early October.
  • World Bank denies reports of Nawaz Sharif laundering $5 billion to India

    World Bank denies reports of Nawaz Sharif laundering $5 billion to India

    He said that the body was doing its job and will continue to do so in unveiling corruption in the country. Mr Sharif has dismissed the corruption charges as politically motivated.
    Electronic Arts (NASDAQ:EA) Given a $138.00 Price Target at Wedbush

    Electronic Arts (NASDAQ:EA) Given a $138.00 Price Target at Wedbush

    The Sims and EA Sports franchises also saw impressive engagement numbers with 80 million and 90 million players, respectively. Perhaps most importantly where cash movements are concerned, the company saw about 849 million in net operating cash flow.

    Arab League Secretary Stresses Need to Review Iran Nuclear Deal

    President Donald Trump abandoned a nuclear deal with Iran and announced the "highest level" of sanctions against the OPEC member. The JCPOA is working - that is a view shared by our European allies, independent experts, and the current U.S.
  • This Is How Ayew Borther's Swansea City Can Escape Relegation

    This Is How Ayew Borther's Swansea City Can Escape Relegation

    Swansea City are 17th on log sheet with 33 points minus 27 goals, while Southampton are 16th with 36 points minus 18 goals. Swansea's manager Carlos Carvalhal can only hopes the champions have one more exceptional 90 minutes in them.
    Mets Bat Out Of Order Against Reds

    Mets Bat Out Of Order Against Reds

    There was just one problem: On the lineup card given by the team to the umpires, Cabrera was listed as batting second, not third. The Mets have lost 16 of 23 following an 11-1 start, falling into fourth place in the NL East. "It probably cost us the game".
    USA  to announce new Venezuela sanctions

    USA to announce new Venezuela sanctions

    State Department has said not all political parties have agreed to the elections, limiting the ability of individuals to run.
  • PENCE TO MUELLER: It's Time to 'WRAP IT UP'

    PENCE TO MUELLER: It's Time to 'WRAP IT UP'

    When Mike Pence came to Washington with Donald Trump he must have left his conscience and whatever integrity he may have had back home in Indiana.
    Enormous chocolate spill shuts down motorway in Poland

    Enormous chocolate spill shuts down motorway in Poland

    Tons of liquid chocolate spilled onto a roadway in Poland early Wednesday morning after a truck overturned. And cleaning up chocolate is a hard proposition, made all the more hard as time passes.
    John McCain Urges Senate to Reject Gina Haspel for CIA Director

    John McCain Urges Senate to Reject Gina Haspel for CIA Director

    While her family has deep roots there, she grew up as an Air Force "brat", following her father to postings all over the world. Senators want to know from Gina Haspel what she would do if President Donald Trump ordered her to waterboard a detainee.