Japan halts imports of oil from Iran

Japan halts imports of oil from Iran

Oil prices reversed course after selling off hard on a shocking 5.836-million-barrel increase in USA crude supply.

On Wednesday, the U.S. Energy Information Administration (EIA) reported that crude oil inventories increased 5.8 million barrels in the week-ending July 13, compared with analysts' expectations for a decrease of 3.6 million barrels.

But today, Adeeb Al-Aama, Saudi Arabia's OPEC governor, said that the Kingdom's July crude oil exports would be similar to June's, and that August's exports would be 100,000 bpd below that.

The price of U.S. crude oil is continuing on its downward path Thursday after a modest rally Wednesday on news that United States demand for gasoline and distillates remains buoyant. United States crude stocks rose by 5.8 million barrels last week, compared with a forecast for a decline of 3.6 million barrels.

More news: Trump Likely To Call Iran For Negotiations: Foreign Ministry
More news: Meghan Markle's dad 'made up' surgery
More news: Trump Appears To Contradict Intelligence Officials Again On Russia

Ahead of the talks with United States official, a source privy to the development said that India could convey to the U.S. that it could look at reducing the import of oil from Tehran in return for an exemption from USA sanctions on plans to push ahead with the development of Iran's Chabahar Port, considered to be a gateway to the landlocked Afghanistan and Central Asia. Yet it signaled on Thursday that it won't go any further for now, saying exports this month will be "roughly equal" to June, and will drop by 100,000 barrels a day in August. "Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference.Prices to high!" The objective is to bring down oil prices-and gasoline prices-ahead of the mid-term elections in November, the same month in which the renewed US sanctions on Iran are returning. Saudi Arabia claims that it has 2mbpd of excess capacity - not enough to plug a major hole in the world oil market.

A sharp jump in US crude oil inventories also added to the bearish tone in the market. In June, Saudi Arabia pumped 10.49mbpd (its OPEC limit is 10.06mbpd).

"Stable and balanced markets are the ideal market form for both producers and consumers, and just as Saudi Arabia would not like to see unmet customer demand, an oversupplied market repels potential investment in the oil industry, curtailing future supply and contributing to volatility", he added. If Iranian oil exports decline to 700,000 bpd or even fewer, its treasury would be swiftly depleted. The United States has added almost 1 million bpd in production since November, thanks to rapid increases in shale drilling.

Prices rose 74c on Wednesday to close at $72.90. The company already has begun diversifying its condensate suppliers, said a Hanwha Total Petrochemical official, adding that Iranian condensate may seem to take relatively high portion but it takes up only 30 percent on yearly basis due to high import volume early this year.

Related Articles

  • European Union  and Japan sign trade deal

    European Union and Japan sign trade deal

    The deal comes following the launch of export tariffs against USA trading partners by President Donald Trump earlier this year. Eventually, Japan will bring the amount of lifted tariffs on European goods to cover 99 percent of all traded goods as well.
    Spurs snub motivated Alderweireld to do well at the World Cup

    Spurs snub motivated Alderweireld to do well at the World Cup

    Tottenham trio Jan Vertonghen, Toby Alderweireld and Mousa Dembele part of the Belgium squad which won Saturday's third-place play-off.
    'Mass casualty incident' after Missouri tourist boat capsizes

    'Mass casualty incident' after Missouri tourist boat capsizes

    They have not yet announced further details on the accident and said it is too early to tell how many people are missing. Crews classify the incident as a "mass casualty" incident that involved a tourist boat.
  • May goes down to four-vote defeat over post-Brexit medicines regulation

    May goes down to four-vote defeat over post-Brexit medicines regulation

    But pro-Brexit Conservative lawmakers were outraged. "As the Prime Minister said, no deal is better than a bad deal". He said the flight-ban would be a tit-for-tat response if Mrs May blocked Irish fishermen's access to our waters.
    Amazon says it's working to resolve glitches

    Amazon says it's working to resolve glitches

    According to Zentail, the company generated an estimated $3.5 billion in the first 12 hours of its Prime Day event this week. Note that Prime Day deals run for a short amount of time and deals mentioned in this article may no longer be available.
    Can beef jerky affect mental illness? Study suggests it can

    Can beef jerky affect mental illness? Study suggests it can

    The amount of nitrates used in these experiments were the equivalent of a human eating one hot dog or beef jerky stick per day. The study showed that chemicals used for processing of meat products can affect the mental state of the person.
  • Trump expects 'big results,' including North Korea, after Putin summit

    Trump expects 'big results,' including North Korea, after Putin summit

    Leaders of so-called rebel republics in Donetsk and Luhansk held referendums in May 2014 that declared independence. A day earlier she didn't shoot down the idea, instead saying Trump was "going to meet with his team" about it.

    Tour de France: Kruijswijk secures Zwift Rider of the Day

    Thomas has the yellow jersey and "we respect him for that", Bernal said of the two-time Olympic track cycling gold medalist. He is now 20 minutes behind Thomas. 'Obviously I felt good but I didn't feel quite as good as yesterday.
    Joe Hart named in Manchester City squad for pre-season American tour

    Joe Hart named in Manchester City squad for pre-season American tour

    Ireland under-19 worldwide Tyreke Wilson has been called into the Manchester City squad for their pre-season tour of the US. Guardiola also confirmed that Hart would play in the preseason game against Dortmund.
  • Trump gripes about Fed in rare rebuke by sitting president

    Although he does not approve with recent hikes, President Trump followed up by saying he put a "very good man in" at the Fed. USA stock prices briefly pared losses after Trump's comments on interest rates.
    Trump at Helsinki: Ronald Reagan or Neville Chamberlain?

    Trump at Helsinki: Ronald Reagan or Neville Chamberlain?

    Asked the question Wednesday, he "no" answer put him sharply at odds with recent public warnings from his own intelligence chief. Trump asserted Wednesday at the White House that no other American president has been as tough on Russian Federation .
    Putin Accuses 'Powerful' US Forces of Trying to Derail Trump Summit Success

    Putin Accuses 'Powerful' US Forces of Trying to Derail Trump Summit Success

    Magazine are never ones to shy away from putting controversial messages on their front cover. His comments Wednesday morning further muddied his stance.