• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 2 hours americavchina.com (otherwise known as OilPrice).
  • 1 day Everything you think you know about economics is WRONG!
  • 1 day Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 2 days Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 8 hours Natural Gas
  • 5 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 2 days Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 15 hours Winter Storms Hitting Continental US
  • 1 day 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 2 days Quotes from the Widowmaker
  • 2 days Tesla Launches Faster Third Generation Supercharger
  • 4 hours My interview on PDVSA Petrocaribe and corruption
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

The U.S. Will Ensure A “Well Supplied Oil Market”

“We will ensure prior to the reimposition of our sanctions that we have a well supplied oil market,” the special U.S. envoy for Iran, Brian Hook told the United Nations General Assembly yesterday. Hook, however, did not go into any detail as to how exactly this will happen. Even so, oil prices briefly subsided, helped by what some called a “surprising” build in U.S. oil inventories as estimated by the American Petroleum Institute.

Earlier this week, prices spiked, with Brent hitting US$81 a barrel for the first time since 2014 on the back of clear signals from Saudi Arabia and Russia that they have no immediate intention of increasing production further.

“Given the numbers we saw today, that (an output increase in 2019) is highly unlikely unless we have surprises on the supply and demand,” Saudi Energy Minister Khalid Al-Falih said last weekend during the OPEC+ meeting in Algeria.

“Oil demand will be declining in the fourth quarter of this year and the first quarter of next year. So far, we have decided to stick to our June agreements,” Russia’s Energy Minister Alexander Novak added. Related: How The EU Is Helping Iran Skirt Sanctions

The United States last month said it will release 11 million barrels from the Strategic Petroleum Reserve, to be sold in November and December, but this amount is more than modest in the context of global demand. India’s daily import rate last year alone stood at 4.4 million barrels, and it has grown since then. It could, however, curb the rise in domestic gas prices at a very sensitive time for the government: midterm elections.

Besides raising its own exports—at a cost—and convincing OPEC to pump more, there isn’t much Washington could do to ensure ample oil supply to replace lost Iranian barrels. In the meantime, the EU is setting up a mechanism to continue buying Iranian crude and keep the nuclear deal in place, and has invited outside partners to join it in these efforts. How much weight would Hook’s assurance have with European leaders as a way of swaying them away from continuing to do business with Iran is highly uncertain.

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