Published: Fri, November 09, 2018
Finance | By Gustavo Carr

US May Impose More Sanctions On Iran

US May Impose More Sanctions On Iran

He said the department had evidence that Iranian vessels are trying to evade USA sanctions by disabling location transponders used to prevent collisions - with the goal of making Iran's oil exports harder to track.

Broader oil markets continue to see steady declines, and WTI barrels have fallen by 20% in barely sick weeks.

The Bank continues to remain supportive of oil price from current levels as the risks are skewed to the upside in the presence of U.S. sanctions on Iran and rising geopolitical risks globally.

USA bank J.P. Morgan said "part of the recent sell-off in oil was due to excessive crude in the physical markets.from elevated production from OPEC whilst Iranian supply was still in the market despite reduction in reported exports".

The nuclear program-related sanctions aimed at preventing Iran, a country that in April was producing 2.8 million barrels per day, to continue its exports.

The United States re-imposed sanctions on Monday to choke Iran's oil and shipping industries, while temporarily allowing top customers such as China and India to keep buying crude from the Islamic Republic.

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Preventing crude from rising further, however, was record USA crude production, which hit a whopping 11.6 million bpd in the week ending Nov 2, according to Energy Information Administration (EIA) data released on Wednesday.

According to EIA's data, the weekly production of USA crude oil since January 2018 averaged about 10.6 million barrels per day.

But Iran supply is expected to rise after November as waivers are used to start ordering more Iranian oil. Analysts had predicted a draw of 2.572 million barrels for the week. "Six months from now, the US will be producing more crude oil than the unverified sustainable production capacity of Saudi Arabia". Portfolio managers have been net sellers of 371 million barrels since the end of September, taking their net long position to the lowest level for 15 months, according to records published by regulators and exchanges.

And Saudi production has recently been averaging a record 10.7 million barrels per day. Opec also pledged to offset any supply gaps. Other OPEC members and exporting nations are also turning on the taps. A collision between an oil tanker and a military frigate off Norway's coast temporarily shut down the nation's largest crude-export terminal, halted the pumping of several North Sea grades, and boosted immediate natural gas prices in the United Kingdom.

"If you look at oil prices they've come down very substantially over the last couple of months", Mr. Trump said.

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