Oil dips on signs of ample supply despite OPEC cuts, Iran sanctions

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

16 May, 2018

He also downplayed the impact of oil supplies from renewed USA sanctions on Iran: "Don't worry about supply", he said, adding that this was not the first time an OPEC member had been in such a situation.

Global benchmark Brent gained $1.11 to settle at $78.23 a barrel.

WTI's June contract was 67 cents higher at $71.63/bbl on the New York Mercantile Exchange as of 8:57 a.m. local time, after rising 26 cents on Monday.

Brent crude futures, the worldwide benchmark for oil prices, were at $78.30 per barrel up 7 cents from their last close and not far off a three-and-a-half year high of $78.53 a barrel reached the previous session, U.S. West Texas Intermediate (WTI) crude futures were at $71.02 a barrel, up 6 cents and also not far off their November 2014 high of $71.89 a barrel reached last week, Reuters reported.

A lot will depend on how other major oil consumers respond to Washington's action against Tehran, which will take effect in November.

Elsewhere, supply concerns have been mounting over the last week after President Donald Trump the United States pulled out of the Iran nuclear deal - a move that reimposes sanctions on Iranian barrels.

Country Stars Honor Their Moms This Mother's Day
It'd be countless when reflecting all those who've stepped in to guide, help, been a "substitute mother ", when Mom wasn't there. For all the wonderful moms , Happy Mother's Day! The theme for the Mother's Day in the year 2016 was "Hands of the Mother ".

In China, the world's biggest oil importer, refinery runs rose almost 12 percent in April compared with the same month a year ago, to around 12.06 million barrels per day (bpd), marking the second-highest level on record on a daily basis, data showed on Tuesday.

The pending US sanctions against Iran have also contributed to the price rise.

"In 2012, the reduction in Iranian crude production and exports were around 1 MMBPD", Wittner said, Reuters reported.

Yesterday, OPEC downplayed the impact of the United States shale boom, but warned about USA trade squabbles.

"Germany has said it will protect its companies from US sanctions, Iran has said French oil giant Total has yet to pull out of its fields and all the while it seems the Chinese are ready to fill the void created by the U.S".

Markets have generally tightened as the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, have been withholding supplies since 2017 in order to push up oil prices. Fifty-five Palestinians were killed in confrontations with Israeli troops on Monday after tens of thousands converged on the Gaza Strip border to protest the US embassy in Jerusalem.


More news


  • Retailer Gap apologises for T-shirts with 'incorrect' map of China

    Retailer Gap apologises for T-shirts with 'incorrect' map of China

    In the statement sent to the Global Times , Gap said the T-shirt has been pulled off shelves in the Chinese market and destroyed. The shirt could not be found on Gap websites and it wasn't clear whether it was still being sold in shops in some countries.
    Google will ban all ads related to the referendum

    Google will ban all ads related to the referendum

    Before Facebook started to block advertising related to the referendum, but which does not belong to Irish advertisers. Google said its decision - which includes ads on YouTube - comes as part of its "election integrity efforts globally".
    David Wagner bemused by Cesc Fabregas' angry reaction to Chelsea draw

    David Wagner bemused by Cesc Fabregas' angry reaction to Chelsea draw

    Chelsea's response was to fling on the cavalry, on came Olivier Giroud and Eden Hazard to save their Premier League season.
  • Mexican Film Released in Cannes

    Mexican Film Released in Cannes

    The Twilight actress recently subtly protested this custom by literally taking off her heels while walking on the red carpet . Lewis Film Awards held at Cannes will celebrate women from the film Industry all over the world.
    'It's Time to Wrap It Up'

    'It's Time to Wrap It Up'

    When NBC asked Pence about Cohen, Pence tried to distance the Trump administration from that part of the investigation, calling it a "private matter".
    The Dual-Citizenship Contagion Promises 5 of Australia Longer Performed

    The Dual-Citizenship Contagion Promises 5 of Australia Longer Performed

    But the Home Office didn't register that she was no longer British until August 16 previous year . All four said they would run again at by-elections that could be held as early as June 16.
  • How to See, Close & Interact with Open Apps in Android P

    How to See, Close & Interact with Open Apps in Android P

    Well, Google just showed the world that such a technology exists and it will be available via Google Assistant in the near future. With Google Assistant integration , you can quickly get your transit updates and traffic details using your voice commands.
    India reject Australia day-night Test

    India reject Australia day-night Test

    According to Sutherland, Australia would still play a day-night Test against Sri Lanka in Brisbane in January 2019. Cricket Australia had been in discussions with the Indian cricket board to stage a day-night Test at Adelaide Oval.
    Tiger Woods paired with Phil Mickelson

    Tiger Woods paired with Phil Mickelson

    Fun was not a word that Woods often used to describe anything but winning in his heyday. Among them was Justin Thomas, who won the FedEx Cup championship previous year .
  • Man City smash Premier League points record with win over Brighton

    Man City smash Premier League points record with win over Brighton

    City broke the record for most wins, most points and most goals on the same night after their 3-1 win over Brighton. Toure, 34, has won three Premier League titles and four domestic cups during his eight seasons at City.
    Washington Capitals: 3 Reasons They Finally Beat The Pittsburgh Penguins

    Washington Capitals: 3 Reasons They Finally Beat The Pittsburgh Penguins

    Braden Holtby stood tall during the Penguins series and posted a.921 save-percentage (SV %) and a 2.1 goals-against-average (GAA). They will meet up with the Tampa Bay Lightning in the East finals, the second meeting between these clubs in the Ovechkin era.

    Hezbollah in shock election win, gets control of Lebanese parliament

    The drop came despite a reformulated electoral law created to encourage voting through proportional representation. This year's vote was according to a new election law providing for proportional representation for the first time.