Iran Upbeat About Oil Exports Despite Sanction Threat

Iran Upbeat About Oil Exports Despite Sanction Threat

Oil LCOc1 reached $78 a barrel on Thursday, its highest since November 2014, two days after President Donald Trump said the United States was abandoning an worldwide nuclear deal with Iran and would impose new sanctions.

Iranian Oil Minister Zanganeh notes that U.S. sanctions on Iran will have limited impact on Iran's oil production.

Perhaps the most interesting reason for the relative calm since Trump's announcement may be that the market has finally grown confident about USA oil production from shale and the likelihood that higher global oil prices will prompt greater domestic production relatively quickly. She had a more conservative Brent crude average of $US70 a barrel for 2018, forecasting it to fall to $US68 a barrel in the second quarter of 2019.

This is the first time Chile has imported Iranian crude in nearly 18 months, according to data from S&P Global Platts trade flow software cFlow.

"Iran's exports of oil to Asia and Europe will nearly certainly decline later this year and into 2019 as some nations seek alternatives in order to avoid trouble with Washington and as sanctions start to bite".

Oil prices shot up to a one-year high on Thursday as traders prepared for possible renewed U.S. sanctions against Iran, and the gap between supply and demand in the market narrowed down.

That made Iran the third biggest exporter of crude within the Organization of the Petroleum Exporting Countries (OPEC), behind Saudi Arabia and Iraq.

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Speaking on "Fox News Sunday", Pompeo said that the United States was not aiming at Europe when it withdrew from the Iran nuclear deal last week.

Last week's speculative buying was initiated by President Trump's decision on Tuesday to walk away from the Iran nuclear deal.

Several Asian refiners told Reuters that they were already on the lookout for alternatives to Iranian crude oil deliveries. Other analysts think that the reduction of Iranian exports could be closer to 1 million bpd.

The analysts said their target price for Brent, the global benchmark, was $90 for the second quarter of next year. However, the prices of the two most traded oil varieties remain at their peak in November 2014.

Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said the soaring volumes were "causing clearing delays".

"OPEC, as always, stands ready to support oil market stability, together with non-OPEC oil producing nations participating in the Declaration of Cooperation", OPEC said, using its name for the pact on supply curbs. The country has been leading efforts since 2017 to withhold production to prop up prices.

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