Breaking News
0

Oil hits highest since November as U.S. tightens Iran sanctions

CommoditiesApr 23, 2019 10:12AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Gas flares from an oil production platform are seen at the Soroush oil fields.

By Noah Browning

LONDON (Reuters) - Oil prices hit their highest since November on Tuesday after Washington announced the end of all waivers on imports of sanctions-hit Iranian crude, pressuring importers to stop buying from Tehran.

Brent crude futures rose as high as $74.70, a level not seen since Nov. 1, before paring their increase as the market gained confidence that global supply would remain robust.

By 1355 GMT, Brent futures were at $74.28 a barrel, up 24 cents, or 0.32 percent, from their last close.

U.S. West Texas Intermediate crude futures were at $66.19 per barrel, up 64 cents or about 1 percent, having earlier reached their highest since October at $66.31.

Despite Washington's announcement, spare capacity from other suppliers such as Saudi Arabia and possible continued imports of Iranian crude by China could balance the market.

"Most people expect that China will continue to import Iranian oil and might even increase imports. They have to make a stand here," SEB commodities strategist Bjarne Schieldrop said.

"Saudi Arabia will be capable of chipping in too to add to global supply," he added.

The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran's eight biggest buyers, most of them in Asia, to continue importing limited volumes.

Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd, according to tanker data and industry sources.

(GRAPHIC: Iran seaborne crude oil & condensate exports - https://tmsnrt.rs/2DE8CHt)

China, Iran's largest customer with imports of about 585,400 bpd of crude oil last year, formally complained to Washington over the move, which a Chinese foreign ministry spokesman said "will contribute to volatility in the Middle East and in the international energy market".

U.S. President Donald Trump is confident that Saudi Arabia and the United Arab Emirates will fulfill their pledges to make up the difference in oil markets, a U.S. official told reporters.

Saudi Energy Minister Khalid al-Falih said on Monday that his country would "coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance".

Saudi Arabia is the world's top oil exporter and de facto leader of OPEC, which has led global supply cuts since the start of the year aimed at propping up crude prices.

The group is set to meet in June to discuss output policy.

Barclays (LON:BARC) bank said in a note that the U.S. decision took many market participants by surprise and would "lead to a significant tightening of oil markets".

The move to increase pressure on Iran came amid other sanctions Washington has placed on Venezuela's oil exports and as combat threatens to disrupt Libya's exports.

(GRAPHIC: Russian, U.S. & Saudi crude oil production - https://tmsnrt.rs/2EUHeFO)

Oil hits highest since November as U.S. tightens Iran sanctions
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Hank Williams
Hank Williams Apr 23, 2019 12:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They adjusted the high. thank you.
Hank Williams
Hank Williams Apr 23, 2019 12:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A bad sign......the high is 666.oh brother!
Hank Williams
Hank Williams Apr 23, 2019 11:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thats supposed to be "fracking" spell check. stop changing my words.
Hank Williams
Hank Williams Apr 23, 2019 11:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No significant tightening of oil markets......they must be long. U.S. to expand the sale of WTI. Easier to refine and cleaner. China is in favor of keeping the planet clean. Just how much oil can the U.S. produce with new tracking technologies?
Juan Martín
Juan Martín Apr 23, 2019 11:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think that now it's the time to invest in oil before it is too late. I used to do in Bilur Market, an investment platform with commodities.
Hank Williams
Hank Williams Apr 23, 2019 10:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If oil gets too out of align it may create a problem with the Aramco deal. Why are the Big Boys acquiring all the NG they can get their hands on? "light bulb".
LEHLOGONOLO MOSESE
LEHLOGONOLO MOSESE Apr 22, 2019 11:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Does USA control the World!!I'm tired of this because it seems as if they don't don't want Iran to export oil too much to other countries!!
Frank Sims
Frank Sims Apr 22, 2019 11:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Have you not read the Bretton Woods Act or understand how the IMF was founded?.....probably should start there.....short answer is yes the US controls the world though the IMF.....
Poison Apple
Poison Apple Apr 22, 2019 11:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
usa should flood india with cheep oil to control oil market , then india will not buy from iran ,
Hank Williams
Hank Williams Apr 22, 2019 11:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Have you noticed all of the recent headlines about the oil majors starting to acquire and get into other energy source areas and away from crude. Interesting!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email