The Trump administration says the oil market can handle the loss of Iranian barrels as the US tightens sanctions on the Islamic Republic. Analysts say the effort to drive Iran's exports to zero will further tighten global crude supplies at a time of heightened geopolitical risk. In the Trump administration's telling, its decision to cut off Iran's oil exports in just over a week will have little impact on crude prices.
FRANKFURT, Germany (AP) — The Latest on the U.S. move to end Iran sanction exemptions (all times local): 4 p.m. Energy analysts at Raymond James & Associates are warning that U.S. imposition of tougher Iranian oil sanctions is "unambiguously bullish" for the price of oil. The analysts say in a report Tuesday that U.S. ally Saudi Arabia will take its time to ramp up oil production to make up for the lost Iranian oil exports. U.S. President Donald Trump announced sanctions last year, but then gave countries waivers to keep importing from Iran. The waiver announcement upset key oil producing countries in the OPEC cartel after they had increased supply in expectation of lower Iranian exports. The
Goldman Sachs expects the United States' decision to end exemptions from sanctions for countries still buying oil from Iran to have a limited impact on crude prices.
Oil prices on Tuesday hit their highest level since November after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply. Zanganeh added that the United States will not be able to reduce Iran's oil exports to zero.
US Crude Oil Is Heading for a New HighUS crude oilOn April 22, US crude oil prices rose 2.3% and settled at $65.55 per barrel—the highest closing level for active US crude oil futures since October 31, 2018. On April 22, the US announced that the
MUMBAI (Reuters) - India said on Tuesday its refineries will have adequate oil supplies, thanks in part to imports from other producers, despite the United States' demand that buyers of Iranian oil stop purchases by May 1 or face sanctions.
China and India are both unlikely to completely cut off Iranian crude imports, energy analysts have said, despite the imminent threat of U.S. sanctions. President Donald Trump's administration announced Monday that buyers of Iranian oil must stop purchases by May 1 or face sanctions. The move, which took many market participants by surprise, ends six months of waivers which had allowed Iran's eight biggest buyers of crude to continue to import limited volumes. International benchmark Brent crude traded at $74.26 Tuesday afternoon, up around 0.3%, while U.S. West Texas Intermediate (WTI) stood at $65.93, almost 0.6% higher. "Iranian exports will not actually reach zero," analysts at Eurasia Group
WTI Oil and Brent crude both soared to fresh 2019 highs on Monday following reports that the United States will soon end waivers granted to countries importing Oil from Iran.