• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 6 mins OPEC will consider all options. What options do they have ?
  • 7 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 3 hours What to tell my students
  • 26 mins Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 21 hours Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 1 hour NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 8 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 3 hours With Global Warming Greenland is Prime Real Estate
  • 1 hour China Threatens to Withhold Rare Earth Metals
  • 16 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 15 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 12 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 17 hours Flaring is at Record Highs in Texas
Alt Text

The Toughest Challenge For Any Energy Company In 2019

Strong volatility and poor overall…

Alt Text

Shale Bleeds Cash Despite Best Quarter In Years

The second quarter earnings results…

Alt Text

Is Renewable Hydrogen A Threat To Natural Gas?

SoCalGas and German Electrochaea have…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil Prices Inch Higher As Sanctions On Iran Kick In

Brent crude and West Texas Intermediate both started the day today with only moderate gains despite the return of U.S. sanctions against Iran that will take effect at 12:01 a.m. Eastern Time today.

At the time of writing, Brent crude was trading at US$73.81 a barrel, with WTI at US$69.05, both up by less than a percentage point from yesterday’s close. But this could change later in the day as the flow of forecasts of reduced supply intensifies.

French Societe Generale has already estimated that the sanctions will remove 1 million bpd of Iranian oil from global markets, and yesterday a Goldman Sachs analyst told Bloomberg that the bank expected a “very, very tight oil market”.

Monday saw the return of sanctions against Iran’s metals, aerospace, and automaking industries. President Hassah Rouhani said President Trump’s recent suggestion the two could meet was only for show, CNBC reported. Indeed, any talks are unlikely since Washington has made it clear it will take nothing short of a regime change to remove the sanctions.

The alternative—Iran’s government agreeing to all U.S. demands such as putting an end to its participation in regional affairs, support for the Yemen Houthis, Hamas, and Hezbollah, and “meddling” in Syria—remains within the realm of fantasy. Related: Warship Or Oil Tanker – What Did The Houthis Hit?

Iranian oil importers from China to Europe are not too happy with the U.S. course of action, but Washington has once again reiterated its intention to see Iranian oil exports squeezed out completely by November 4. A government official this week repeated this goal, adding that the case-by-case treatment of countries was still on the table, but that “but our goal is to reduce the amount of revenue and hard currency going into Iran.”

By the looks of it, oil prices are set for a rise in the coming months as the effect of the sanctions begins to be felt, which is not particularly good news for the administration: midterm elections are coming in November and prices at the pump tend to have an impact on voting decisions. Yet for now it seems the crackdown on Iran is higher on Washington’s priority list than keeping gas prices lower for longer.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play