• 3 minutes War for Taiwan?
  • 7 minutes How China Is Racing To Expand Its Global Energy Influence
  • 10 minutes Is it time to talk about Hydrogen?
  • 2 hours U.S. Presidential Elections Status - Electoral Votes
  • 49 mins “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 hours Tesla Semi
  • 3 hours WTI / ​​​​​​​Price Forecasting 
  • 11 hours Mail IN Ballot Fraud
  • 19 hours “Did Authorities Do Enough To Find Out Why Oil Prices Went Negative?” By Irina Slav – Nov 26th
  • 8 hours “Consumers Will Pay For Carbon Pricing Costs” by Irina Slav
  • 2 days Biden's Green New Deal- Short Term - How Will He Start to Transition Out Of Crude?
  • 2 days America Could Go Fully Electric Right Now
  • 4 hours Russia loses its chance to capture the EU gas market
  • 18 hours Deceptions Revealed about the “Nord Stream 2 Pipeline” and Germany
  • 2 days Saudi Arabia Seeks to Become Top Hydrogen Exporter

Breaking News:

Gold Set For Its Worst Month In 4 Years

Iran's Leading Nuclear Bomb Expert Assassinated

Iran's Leading Nuclear Bomb Expert Assassinated

Dr. Mohsen Fakhrizadeh, known as…

OPEC+ Rumors Send Oil Prices Diving

OPEC+ Rumors Send Oil Prices Diving

Oil prices dived sharply on…

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