• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 5 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 23 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 24 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Mike Shellman's musings on "Cartoon of the Week"
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 day Are Trump's steel tariffs working? Seems they are!
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 17 hours Why hydrogen economics does not work
  • 6 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 16 hours China goes against US natural gas
All-Time Low Spare Capacity Could Send Oil To $150

All-Time Low Spare Capacity Could Send Oil To $150

Many oil markets watchers have…

The “Weakest” EIA Report In Years

The “Weakest” EIA Report In Years

The EIA’s most recent weekly…

IEA: Return Of Iran Sanctions Could Impact Oil Market Balance

Trump

The restoration of sanctions on Iran—the world’s fifth-largest oil exporter—may have implications for the market balance, the International Energy Agency (IEA) said in a statement on Wednesday, adding that it is closely following the situation.

“In recent months, oil market dynamics have been shaped by strong growth in demand, compliance by countries party to the Vienna agreement to cut output, and the crisis in Venezuela, leading to tighter overall market conditions. The restoration of sanctions on Iran, which exports 2.5 million barrels of oil a day and is the world’s fifth-largest exporter, may have implications for the market balance,” the IEA said in its brief statement today.

On Tuesday, U.S. President Donald Trump withdrew the United States from the Iran nuclear deal.

“The re-imposed sanctions will target critical sectors of Iran’s economy, such as its energy, petrochemical, and financial sectors. Those doing business in Iran will be provided a period of time to allow them to wind down operations in or business involving Iran,” President Trump said.

According to the Treasury factsheet, the U.S. will resume efforts to reduce Iran’s crude oil sales, with sanctions to be re-imposed following a 180-day wind-down period. Countries seeking exceptions “are advised to reduce their volume of crude oil purchases from Iran during this wind-down period,” the Treasury noted.

Analysts polled by S&P Global Platts expect an immediate impact of less than 200,000 bpd of Iranian oil shut in, possibly rising to 500,000 bpd after six months, as the deadline for sanctions to kick in nears. Yet, some analysts think that the reduction of Iranian exports could be closer to 1 million bpd.

The market had largely expected that President Trump would refuse to waive the sanctions on Iran this time around, and after an earlier dip on Tuesday, oil prices jumped after the announcement that the U.S. was walking away from the deal.

At 2:14p.m EDT on Wednesday, WTI Crude was surging 3.04 percent at $71.16, and Brent Crude was up 2.97 percent at $77.07.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News