• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 22 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 5 days World could get rid of Putin and Russia but nobody is bold enough
  • 1 day America should go after China but it should be done in a wise way.
  • 7 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 7 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 9 days United States LNG Exports Reach Third Place
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Tom Kool

Tom Kool

Tom majored in International Business at Amsterdam’s Higher School of Economics, he is Oilprice.com's Head of Operations

More Info

Premium Content

Oil Gains 2% As Iran Deal Fades, Market Eyes Tight Supply

  • WTI crude gained 2% on Monday morning.
  • European diplomats expressed “serious doubt” that Tehran is genuinely seeking a revival of the 2015 nuclear deal.
  • Softer U.S. dollar supports crude prices.

Oil prices pared some losses on Monday, with Brent gaining nearly 2% as a nuclear deal with Iran seemed to fade further away and markets refocused on Europe’s coming ban on Russian oil and tight supply fears. 

At 11:50 a.m. EST on Monday, Brent crude was trading up $1.90, at $94.74 per barrel, for a 2.05% gain on the day. WTI was trading up $1.69, at $88.48 per barrel, for a 1.95% gain on the day. 

Iranian nuclear talks appear to be contributing heavily to the rally, with European diplomats expressing “serious doubt” that Tehran is genuinely seeking a revival of the 2015 nuclear deal. 

Israeli Prime Minister Yair Lapid, currently in Germany, highlighted what he referred to as “encouraging signs” that the nuclear deal would not be revived, suggesting that Israeli plans to the end were showing success.

The absence of a nuclear deal with Iran keeps Iranian barrels off the market, further speaking to tight supply, fears of which are currently being offset–on and off–by China’s COVID lockdowns. 

All last week, lockdowns in China–the world’s top energy importer–weighed on oil prices amid forecasts that the country’s demand could shrink for the first time since 2002 amid mobility restrictions. 

By Monday, however, we have seen a return of fears that tight supply will not be able to balance robust demand as the European Union’s ban on Russian seaborne crude nears its December 5th implementation deadline, and as the G7 puts plans in motion to cap Russian oil prices at the same time. 

Also contributing to a boost in oil prices, the US dollar, which has surged some 13% this year, is retreating from earlier highs, starting Monday down ahead of U.S. inflation data to be released on Tuesday.  

By Tom Kool for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on September 12 2022 said:
    Iran is far more interested in ejecting US military presence from Iraq than reaching a new nuclear deal. It is therefore hardly desperate for a nuclear deal with the US having been exporting 1.5 million barrels a day (mbd) of oil or 71% of its pre-sanction exports and earning very lucrative export revenues. It is already winning the geopolitical war with the US in the Gulf region. Moreover, the China-Russia-Iran access in the Gulf region is on the ascendency at the expense of the US-UAE-Israel-India alliance particularly after India jumped ship.

    And while concerns about China’s COVID lockdowns do dampen demand for crude oil, the same couldn’t be said about a nuclear deal with Iran or a lack of it. The maximum Iran could add to the global oil market in the event of a deal doesn’t exceed 600,000 barrels a day (b/d) being the difference between Iran’s pre-sanction exports and current exports under sanctions. This is a drop in the ocean in global oil demand.

    Neither banning Russian crude nor a proposed cap on Russian oil prices will ever succeed because Russian crude oil exports of 8.0 mbd are irreplaceable.

    Either action will impose an exceptionally heavy financial loss on Western economies particularly the United States and will also bring them much closer to a very harsh recession.

    Meanwhile, Russian crude exports continue to flood Asian markets in ever increasing volumes with Russian crude reaching the US and the EU in large volumes as petroleum products refined by India and sold worldwide.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News