U.S. will 'absolutely' sanction European companies that do business with Iran

Adjust Comment Print

"Opec and non-Opec countries participating in the Declaration of Cooperation remain unwavering in their commitment to contribute to market stability, in the interests of producers, consumers and the global economy", Mazrouei said in a statement.

United States crude inventories fell by 4.5 million barrels to 416.9 million barrels in the week to June 29, the American Petroleum Institute (API) said on Tuesday.

It's no secret that President Donald Trump is not a fan of The Organization of the Petroleum Exporting Countries (OPEC).

Brent oil rose on Wednesday, driven higher by a threat from an Iranian commander and a drop in USA crude inventories for the second week in a row.

Last month President Donald Trump withdrew the United States from the landmark Iran nuclear deal, re-imposing USA sanctions that had been suspended in return for curbs on Tehran's nuclear programme.

The 9.1 trillion 2018 budget was predicated on a benchmark price of $51 per barrel and production of 2.3 million barrels per day. "We want to work with these countries to build a strong global effort", he said.

The private sector in Iran was allowed to export crude oil in a bid to thwart USA sanctions, Iran's first vice president said here on Sunday.

At their meeting in Vienna last month, OPEC countries and key ally Russian Federation said they will raise production by a million barrels per day, but analysts are concerned it may not be enough for oil prices to spiral out of control, at least until new US shale production comes on stream.


Washington is stepping up pressure on all countries, including India and China, to completely stop buying oil from Iran by November 4.

Crude oil prices rose on Tuesday with the US benchmark hitting a four-year high on expected drains in domestic inventories and outages in Libya.

Unsurprisingly, Mr Trump's Twitter demands for increase in oil production and threats to OPEC "do not automatically create the pricing changes that he sought", said Ms Young.

Most of the rally has been fueled by supply disruptions in Canada, Venezuela and Libya as well as the looming sanctions against Iran.

Saudi Arabia later acknowledged a call had taken place between Trump and Saudi Arabia's King Salman, but did not mention any production targets.

Inventories at Cushing fell 2 million barrels last week, according to a separate forecast compiled by Bloomberg.

"Also, taking a broad range of estimates from IEA, EIA and others, Saudi held spare capacity in the range of 1.3 - 2.1 mb/d when oil production was ~10 mb/d".

Oil production, prices and politics require a delicate balance.

Comments