Oil Prices steady: OPEC says it could offset Iranian supply losses

Oil jumps after US abandons Iran deal, plans 'highest level' sanctions

Oil jumps after US abandons Iran deal, plans 'highest level' sanctions

Iran re-emerged as a major oil exporter in 2016 after worldwide sanctions against it were lifted in return for curbs on its nuclear program, with its April exports standing above 2.6 million barrels per day (bpd).

In 2012, American oil stayed at home, giving the USA less leverage to compel powerhouse oil-consuming countries like India and China to sanction Iran.

USA crude is trading at a hefty discount to Brent, the global marker, thanks to sharp rises in US production to 10.7 million bpd, which has left the American domestic oil market well supplied.

"Russian and Chinese firms in particular may still be willing to invest in Iran, but if sanctions result in excess capacity at existing fields, there will be little economic rationale to support new developments".

Prior to the introduction of the EU's 2012 sanctions against Iran, Saras bought some 10% of its crude from there, and had been buying Iran crudefor some 30 years until that time. Key data to watch for are any additional upward revisions to world oil demand.

The oil inventories of main developed countries almost declined to a latest five-year average level, indicating a possible tipping point from the supply glut, OPEC's latest report on Monday showed.


President Donald Trump is set to announce Tuesday whether the USA will waive sanctions against Iran as part of landmark nuclear agreement or exit the deal, a move that experts and officials have said could have a huge impact on oil and gas prices.

Trying to ease market concerns, Saudi Arabia on Wednesday said it would work with other producers to lessen the impact of any shortage in oil supplies.

Oil price is now trending towards $80 per barrel following bullish trading that heightened yesterday in the global market which saw the price leap to $78 yesterday, up from $67 April average.

The tightening market has all but eliminated a global supply overhang that depressed crude prices between late 2014 and early 2017. Traders will again look for changes in supply and demand expectations.

Non-Opec production remained flat for the second month at 58.6 million barrel per day in March because of higher production from the United States and the North Sea region, which was offset by other non-Opec members. Last month, the IEA left global demand forecasts unchanged in 2018 at 1.5 million b/d, slightly less than OPEC's expectations.

The daily price chart is more mixed, however, with the completion of a Doji Star Bearish Reversal candle last Thursday. With WTI's price above $70 a barrel, that increase wasn't surprising, ING strategists said in a note. Contrasting the emerging candlestick patterns is a strong vote of confidence from a mix of technical indicators and moving averages.

Recommended News

  • $70M Picasso painting damaged before owner, CNY's Steve Wynn, can auction it

    $70M Picasso painting damaged before owner, CNY's Steve Wynn, can auction it

    Another Picasso work Wynn owned, Femme au chat assise dans un fauteuil , was also pulled from sale, as reported by Bloomberg . The New York-based auction house gave no further details about how the damage occurred or how badly the piece was affected.
    Counting of votes for K'taka Assembly polls begins

    Counting of votes for K'taka Assembly polls begins

    Again Congress was single largest party with 17 seats and BJP got only 13 seats. remaining 10 seats shared by other parties. It predicts 82 to 94 seats for Congress, while JD (S) and others will get 18-31 seats and 1 to 8 seats respectively.
    Central AL Forecast: Rain on tap for the week

    Central AL Forecast: Rain on tap for the week

    We'll have to wait and see if the system clears out for Sunday or if we have a weekend which features damp weather on both days. The most likely time of these storms would be after 4 p.m. and continuing through the middle part of the evening.
  • Tesla driver says she slammed into fire truck on Autopilot

    Tesla driver says she slammed into fire truck on Autopilot

    Police said the driver, who suffered a broken ankle, said she had been using Autopilot before the crash. Over the past few months, the NTSB has begun investigating several incidents linked to Tesla's cars.
    'Last Man Standing' gets second life in Fox

    'Last Man Standing' gets second life in Fox

    With our increased investment in football, we're going to use the powerful platform of the NFL to launch our new comedies. For the first time, football will occupy all of Fox's Thursday-night schedule throughout the fall and early winter.
    David Tepper expected to sign deal to buy Panthers

    David Tepper expected to sign deal to buy Panthers

    Bank of America Stadium in Charlotte, North Carolina; home facility and headquarters of the Carolina Panthers of the NFL. For the first 59 years of his life, David Tepper was rarely too far from his native Pittsburgh.
  • Iran Urges EU to Hold Meeting of JCPOA Joint Commission

    Iran Urges EU to Hold Meeting of JCPOA Joint Commission

    On Sunday US Secretary of State Mike Pompeo said Washington still wants to work with Europe to counter Iran's "malign behavior". But he added: "If the nuclear deal is to continue, the interests of the people of Iran must be assured".
    Look! Amazon Go Stores Set To Open In Chicago & San Francisco

    Look! Amazon Go Stores Set To Open In Chicago & San Francisco

    It is recently reported that Amazon had its eye on an Amazon Go location in San Francisco's Union Square neighborhood. In addition to these two new locations, there are allegedly still a few more Amazon Go stores waiting to be built.
    Eli Manning's memorabilia fraud trial delayed

    Eli Manning's memorabilia fraud trial delayed

    They claim they will provide evidence that Manning and the Giants' equipment staff have been defrauding collectors for years. The email was meant to ask Skiba for two helmets that would "satisfy the requirement for being game used", the filing said.
  • Lewis Hamilton not getting carried away despite dominant Spanish Grand Prix win

    Lewis Hamilton not getting carried away despite dominant Spanish Grand Prix win

    But the German marque struggled a year ago in Monaco, with Ferrari sweeping to a one-two finish. "We need to understand why we struggled with the tyres more than the others did", he said.
    Nokia X6 price and specs leaked by retailer

    Nokia X6 price and specs leaked by retailer

    In terms of specifications, the device features a 5.5-inch IPS display with a full-HD display with a 1080x1920 pixels resolution. Nokia X6, in its standard version (Mediatek with 4 GB RAM), will cost 1499 yuan, which equals to about $237.
    Superman actor Margot Kidder passes away at 69

    Superman actor Margot Kidder passes away at 69

    DC Comics' Twitter account paid tribute, writing, "Thank you for being the Lois Lane so many of us grew up with". She was married and divorced three times and is survived by her only child, daughter Maggie, and three children.

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.