Oil prices gain as Iranian crude exports fall, Hurricane Michael nears

Oil prices gain as Iranian crude exports fall, Hurricane Michael nears

Hedge funds cut their bullish wagers on USA crude in the latest week to the lowest level in almost a year, data showed on Friday. The Trump administration is considering waivers on sanctions, a USA government official said on Friday.

"The U.S. appears to be abandoning its tough stance on buyers of Iranian oil", analysts at Commerzbank said. Currently, India pays Iran in euros using European banking channels but these would be blocked from November, said the report.

In a sign that Iran oil exports won't fall to nothing from November, India will buy 9 million barrels of Iranian crude next month, Reuters reported on Friday.

Another factor easing those fears was a Friday Reuters report that cited an unnamed usa government official as saying the Trump administration is considering waivers on its sanctions for countries that agree to reduce their imports of Iranian oil.

While Washington has said it wants to cut Iran's oil exports to zero, Iran and Saudi Arabia say that is unlikely.

Some energy market analysts expect around 500,000 barrels per day (bpd) to disappear once US sanctions against Iran come into force, while others have warned as much as 2 million bpd could come offline over the coming months.

Furthermore, Leszczynski says that if India were to stop or significantly reduce imports from Iran, it would complicate the strategic relationship it is trying to build between the two countries.

Washington is also asking buyers of Iranian oil to slash imports to zero to force Tehran to negotiate a new nuclear agreement.

More news: United Kingdom lawmakers willing to vote down Brexit deal
More news: Watch 2018 American Music Awards live stream online
More news: Michael strengthens into a hurricane, menaces Florida

"Any country that makes such claims. just wants to display its support for the USA sanctions against Iran", Zanganeh was quoted as saying.

That is the longest streak of weekly cuts since October previous year.

President Trump chose to leave the deal and reimpose sanctions.

The news of India's continued importation of Iranian crude had a positive effect on oil prices, with Brent crude down 1.6% to $82.79 at the time of writing on Monday morning.

Given their dependence on Iranian oil supplies, the Indian refiners are concerned about the loss of Iranian crude once the sanctions start and are seeking exemptions. "So let us see how it evolves", he said.

Although countries like Turkey, Russia, and China have indicated they will go ahead with their oil trade with Iran, the European Union will probably accede in a large measure, given the exposure of their companies to the USA banking system.

Drillers cut two oil rigs in the week to October 5, bringing the total count down to 861, energy services firm Baker Hughes said in its weekly report on Friday.

Has the simmering crude oil market peaked, even if for the time being?

Related Articles

  • Fabinho learning and adapting to Klopp's methods

    Fabinho learning and adapting to Klopp's methods

    After starting the season with seven straight victories, Liverpool have now failed to win any of their past four matches. He is a coach who demands a lot from his players, not just in matches but also on a daily basis in training.
    DC Comics hires James Gunn after Disney fires him

    DC Comics hires James Gunn after Disney fires him

    Fresh off his Marvel firing, James Gun is reportedly in talks to write and potentially direct DC's Suicide Squad sequel. Now Deadline reports that Warner Bros.is hiring Gunn to write for the (vastly inferior) D.C. cinematic universe.
    China slashes banks' reserve requirements as trade war imperils growth

    China slashes banks' reserve requirements as trade war imperils growth

    The 30-year Treasury bond reached a four-year high of 3.424 percent, and was at 3.4054 percent at the USA close on Friday. Sydney retreated 1.4 percent, Singapore eased 0.5 percent, and Taipei and Seoul were each 0.6 percent lower.
  • Microsoft shows off game streaming service Project xCloud

    Microsoft shows off game streaming service Project xCloud

    This is basically a new streaming service that will allow you to play your favourite Xbox games on a tablet or mobile device. In order to keep compatibility for all existing and future Xbox games, custom hardware has been built for Azure datacenters.
    PlayStation Network online ID change feature coming in early 2019

    PlayStation Network online ID change feature coming in early 2019

    If this is an issue, you can revert back to the original name for free at any time (but just once during the preview program). Sony announced today on the PlayStation blog that they will soon begin testing the long-awaited ID change feature.
    Virgin Galactic will be in space in

    Virgin Galactic will be in space in "weeks not months", says Branson

    In September, Musk announced his SpaceX company had sold its first ticket for a trip around the moon. Like most space travel plans, that mission has seen multiple delays and is now set for June 2019 .
  • 30-year-old doorstop turns out to be a rare meteorite

    30-year-old doorstop turns out to be a rare meteorite

    Mazurek explained that the rare mass of iron and nickel came with his barn in Edmore, which he purchased it back in 1988. Professor of Geology at the University of MI claims that for 18 years they have brought any stones, but not meteorites.
    Lady Gaga mental health essay calls for funding and awareness

    Lady Gaga mental health essay calls for funding and awareness

    According to the South African Depression and Anxiety Group (Sadag), 9% of all teen deaths are due to suicide. She says that young children, some as young as six-years-old, can also be affected by mental health issues.
    IMF says Pakistan has not approached fund for deal

    IMF says Pakistan has not approached fund for deal

    The IMF now expects next year's growth rate to come to 2.4 percent, against 1.8 percent in April. He called on countries to ensure inclusive growth, which he said was "more important than ever".
  • That's wife! Century maker Hafeez reveals Test return inspiration

    That's wife! Century maker Hafeez reveals Test return inspiration

    Babar Azam (28) announced his arrival with a six, and so did Asad Shafiq who took the attack to the spinners from the word go. Yasir Shah of Pakistan recovers after being struck on the chest during day three of the first test against Australia.
    Google unveils Home Hub

    Google unveils Home Hub

    Plus, the device supports Google's Voice Match, so up to six people in your home can get their own personalised Mourning Routine. The Pixel 3 comes with an 18W fast charger in the box, which can give you seven hours of use in 15 minutes of charge.
    Turkish newspaper names 15 Saudis in missing journalist case

    Turkish newspaper names 15 Saudis in missing journalist case

    The Saudi regime denies this. "Violence against journalists is going up and is a grave threat to freedom of expression", he said. The group then left the country on the two private jets that flew to Riyadh via Cairo and Dubai, according to investigators.