Published: Wed, May 16, 2018
Entertaiment | By Mabel Barber

How will the Iran deal collapse impact crude prices

How will the Iran deal collapse impact crude prices

West Texas Intermediate, the US marker, is $3.21 a barrel below Middle East benchmark Dubai.

On the New York Mercantile Exchange, June West Texas Intermediate crude added 35 cents, or 0.5%, to settle at $71.31 a barrel.

Yesterday, the Energy Information Administration said it expected shale oil production to hit 7.178 million barrels daily next month thanks to a record-high monthly increase of 144,000 bpd.

US light crude was 26 cents lower at $70.69 a barrel, also not far off its highest since November 2014.

Brent crude futures, the worldwide benchmark for oil prices, stood at $78.21 per barrel on Tuesday, virtually unchanged from their last close and not far off a three-and-a-half year high of $78.53 a barrel reached the previous session, CNBC reported.

The IEA said that the overall market balance was "continuing to tighten", and it lowered its estimate for 2018 global oil demand growth to 1.4 million barrels per day from its previous estimate of 1.5 million.

Michael Carrick picks up Man Utd coaching reins for FA Cup final
I am not training this week". "I will organise my coaching staff in a way where the assistant manager figure doesn't exist", Mourinho said.

Global oil supplies could be hit by the decision by the United States to pull out of the Iran nuclear deal, and also by falling production in crisis-hit Venezuela, the IEA said on Wednesday. The rising oil prices are also giving the government a headache as a chunk of its annual budget will now be required in its purchase, thereby compromising on other social sectors.

OPEC figures published on Monday showed oil inventories in OECD industrialized nations in March fell to 9 million barrels above the five-year average, from 340 million barrels above the average in January 2017.

Analysts project that oil exports from Iran could be reduced by about 0.5 million barrels a day as South Korea and Japan trim their imports, said analysts for J.P. Morgan in a recent report.

The call on OPEC crude and stocks will average around 32.25 mb/d for the remainder of 2018, almost 0.6 mb/d higher than April output, according to the report.

Iran's oil buyers continue to buy its crude, assessing the implications of the sanctions during the 180-day wind-down period.

"The API inventory data in the USA fits with. a topping pattern - or at least a decent pause - for oil prices at the moment", said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Like this: