Oil Nears $80 in London Amid Falling Stockpiles and Iran Risks

Share
Oil Nears $80 in London Amid Falling Stockpiles and Iran Risks

It will take up to 180 days to allow Iranian oil customers and other companies involved in doing business with Tehran to make plans.

And you'll remember that Andurand Capital Management, a hedge fund manager, recently said on Bloomberg TV that $300 oil wouldn't be impossible.

They earlier touched their highest in more than 3-1/2 years at $79.49 a barrel. But no, it's doing the exact opposite.

Goldman also said the tight market left "room for OPEC to exit (its production cuts) without significant price impact".

OPEC also has a headache in the form of rival supply from outside its club, namely from the United States, which is on course to become the largest producer in the world by the end of this year, with output set to top 11 million bpd.

Dr. Mohamed Ramady is an energy economist and geo political expert on the GCC and former Professor at King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia and co-author of "OPEC in a Post shale world - where to next?' His latest book is on 'Saudi Aramco 2030: Post IPO challenges".

But it's not only about supply.

Crude has rallied this month on concern that President Donald Trump's decision to quit an worldwide accord with Iran and reimpose sanctions will strain global supplies just as markets are already tightening.

The IEA said global oil demand would average 99.2-million bpd in 2018, although USA bank Goldman Sachs said consumption would cross 100-million bpd "this summer".

Over the same timeframe, oil supply increased in Africa, Latin America, the Former Soviet Union and Asia Pacific countries that are members of the Organisation for Economic Co-Operation and Development (OECD).

In the month of March, India's oil demand rose by a strong 335 kb/d, contributing to a growth of 360 kb/d in the first quarter. "Because if you reach infrastructure constraints in terms of ability to put additional barrels on the market and you're going to be taking off Iranian barrels - and don't forget Venezuelan production, which has played a huge role in balancing this market - and they (OPEC) could lose a million barrels year-on-year". All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below. "The price is pretty good and we're not seeing any growth outside the USA", said the investor. Active units there increased by five this week to 463, the most since January 2015.

Up to 1 million b/d of Iranian oil exports could by affected by the USA move with Iran's biggest oil buyers, China and India, expected to continue importing its oil.

However, the cure for higher oil prices tends to be higher oil prices. Past year at this time, a gallon of regular gasoline cost $2.336 on average in the United States.

The US could also penalize American subsidiaries of foreign companies that invest in Iran or purchase its oil.

Share

Advertisement

Related Posts

Celtics take Game 1 of East finals, beating Cavaliers 108-83
Thompson said he brings toughness and energy off the bench, but he's ready if called upon to set the tone as a starter. Just ask the Indiana Pacers . "I didn't go to college, so it's not March Madness", he said. "He's always done it".

Deadpool 2 Film Review: The Merc with the Mouth is back
Pic: Dave Allocca/Starpix/REX/ShutterstockThis is Ryan's second time playing the wisecracking mercenary Wade Wilson. The problem is the surprise element that made the first film so enjoyable is no longer there.

Tiger Woods: I Played 'Much Better' Than Players Championship Score Suggests
FedExCup leader Justin Thomas is projected to move to world No. 1 after closing with a 6-under 66 to finish in a tie for 11th. Simpson stalled with six straight pars before a first birdie of his round at the par-four seventh that took him to 20-under.

Celebrating Mother's Day as Bills fans
Have a look at some amusing Mother's Day quotes , along with loving wishes from a husband to his wife on Mother's Day . The American incarnation of Mother's Day was created by Anna Jarvis in 1908 and became an official USA holiday in 1914.

Cavaliers vs. Celtics: Game 2 Prediction, NBA Playoff Odds
Now they all want to bring the Rockets their first National Basketball Association title since 1994 and 1995. Durant, who played just more than 40 minutes, was asked if he'd prefer to play the entire 48 minutes.

Europe to ditch U.S. dollar in payments for Iranian oil
The bloc is reportedly planning to maintain and deepen economic ties with Iran , including in the area of oil and gas supplies. Germany, the United Kingdom , and France have significant trade links with Iran and remain committed to the nuclear agreement.

Fantasy sports betting vote could pave way for real sports betting
SCOTUS' sports betting ruling reinforces states' rights and is another nail in the coffin of online gaming ban effort . One of the big questions if Colorado were to legalize sports gambling is how it would be handled on mobile devices.

The great Laurel or Yanny Debate
Alais says that the brain can flip back and forth between both sounds because it can find a definitive interpretation of the clip. Kothare suggested that the recording was likely "cleverly synthesized" to trick our brain's powers of speech detection.

There's science behind the 'yanny or laurel' debate
Since then, the debate has taken off, as people all over the Internet can't stop arguing over what the real word being said is. Douglas Beck, an audiologist at Oticon, told National Geographic that there is a difference between hearing and listening .

Oregon's Primary Election Is Tuesday
Kate Lenahan, a suburban lawyer who canvassed for Scanlon on Saturday, said she "wasn't really involved" before Trump was elected. Andre Jacque of De Pere is running against Green Bay businessman Alex Renard for the Republican nomination to the Senate seat.

© 2015 Stocks News Daily. All Rights reserved.