Oil prices fall amid record U.S. output, stockpile build

Daniel Fowler
July 20, 2018

Iran's oil exports reached 2.819 million barrels per day in 2017, up from 1.595 million barrels per day in 2015.

Another victor if USA sanctions are adopted widely would be Saudi Arabia.

This includes the Bank of Kunlun Co, Ltd, a bank affiliated with the China National Petroleum Corp with limited exposure to the global financial system.

Even India and China among other nations have been asked to cease oil imports from Iran as the U.S. will look to bring Iran under heavy sanctions and isolate the Iranian economy.

President Trump took to Twitter in late June, when oil prices were on the rise as many feared tightening oil supplies.

The official said that an Iranian oil official confirmed to the WSJ that Tehran was in talks with Beijing on diverting its oil sales to China. Take, for instance, the surge in USA shale-oil production due to the innovative use of hydraulic fracturing combined with horizontal drilling, which has been a big upshot for US oil production.

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Oil has fallen from recent highs as the U.S. The US oil benchmark closed above its 50-day moving average yesterday after slipping below that level earlier this week, while worries over potential supply losses in Venezuela and Iran as well as sporadic disruptions in Libya linger.

Iran has hoped that its Asian buyers - who purchase the bulk of Iranian oil - will not follow U.S. sanctions. Two days later, the U.S. electorate will go to the polls. U.S. Administration is actively considering releasing part of the 660-million-barrel SPR, with options ranging from a test sale of 5 million barrels to a release of as much as 30 million barrels, and even higher if coordinated with other countries.

Oil prices dropped on Wednesday after an industry group reported that us crude inventories rose last week, defying analyst expectations for a significant reduction.

China's crude oil imports fell for a second month in a row in June to the lowest since December, as shrinking margins and volatile oil prices led some independent refiners to scale back purchases. Opec's de facto leader Saudi Arabia, which has been under pressure from US President Donald Trump to pump more and ease prices, said exports this month will be "roughly equal" to June, and they will drop by 100,000 barrels a day in August. Saudi Arabia also said that OPEC+ would no longer focus on country-specific output limits but instead would heed a collective target, a switch that would free Saudi Arabia to ramp up production. The kingdom, suffering its own economic crisis, is nonetheless willing to cut off its nose to spite its face.

JXTG Holdings and Idemitsu Kosan are the two Japanese suppliers of Iranian oil and both of them were warned by the United States to halt oil trade with Iran completely.

Last week, a senior Iranian military commander said his country would - if pressured - close its territorial waters to worldwide oil tankers. A fifth of the world's oil passes through the Straits of Hormuz, nearly half of the oil brought to the surface in West Asia. The 1982 UN Convention on the Law of the Sea affirmed this notion of "innocent passage". The US naval base in Bahrain is entirely there to keep the Strait open.

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