• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 3 hours Science: Only correct if it fits the popular narrative
  • 3 hours Crazy Stories From Round The World
  • 11 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 16 hours EU has already lost the Trump vs. EU Trade War
  • 9 hours China's Renewables Boom Hits the Wall
  • 1 day ''Err ... but Trump ...?'' *sniff
  • 30 mins Do The World's Energy Policies Make Sense?
  • 10 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 1 day Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 3 hours Impeachment Nonsense
  • 1 day Tesla Launches Faster Third Generation Supercharger
  • 15 hours Water, Trump, and Israel’s National Security
  • 2 days Passerby doused with flammable liquid and set on fire by peaceful protesters

Breaking News:

Russia Plans To Boost Crude Oil Exports

The Big Lie Behind Global Energy Policy

The Big Lie Behind Global Energy Policy

The looming climate change crisis…

Why Have Oil Markets Turned So Bearish?

rig

Oil prices slid early on Tuesday, as reports of the U.S. asking OPEC to lift oil production and hedge funds boosting their short positions added to bearish sentiment. Rising geopolitical concerns over Iran vowing to enrich uranium amid EU attempts to salvage the nuclear deal as well as heightened tensions in the Iranian-Israeli feud helped to boost prices in the afternoon.

At 09:16 a.m. EDT today, WTI Crude was down 0.05 percent at $64.72, while Brent Crude traded down 1.05 percent at $74.50. Brent prices touched their lowest in nearly a month, since May 8, the day on which the U.S. withdrew from the Iran nuclear deal.

Earlier on Tuesday, Bloomberg reported that the United States had quietly asked Saudi Arabia and several other OPEC nations to raise oil production by some 1 million bpd.

While the U.S. government has often expressed opinion against OPEC’s oil price-fixing policies, including a recent comment by President Trump, asking for a specific amount of oil production come online is a rare move.

Saudi Arabia and some of its close Arab allies in the Gulf, as well as the leader of the non-OPEC nations taking part in the production cut deal—Russia—are the only producers that have the spare capacity to increase production. So, in case of increased production from OPEC and allies, the potentially lower oil prices would hurt the other OPEC members that don’t have the spare capacity to boost output.

On the geopolitical front, Iran’s Supreme Leader Ayatollah Khamenei ordered on Monday the Atomic Energy Organization of Iran to “make the necessary arrangements to reach 190,000 SWU in the framework provided by the JCPOA.”

“Iranian nation & government will not stand being under both sanctions & nuclear restrictions. The Atomic Energy Organization of #Iran must immediately make the preparations for achieving 190K SWU-- for now within #JCPOA-- starting tomorrow,” a tweet from the leader’s Twitter account says.

The Prime Minister of Israel, Benjamin Netanyahu, tweeted, referring to Iran’s pledge to enrich uranium: “Ayatollah Khamenei, ruler of Iran, declared his intention to destroy Israel. Yesterday he explained how he would do this – with the unrestricted enrichment of uranium, to produce an arsenal of nuclear bombs. We are not surprised. We will not allow Iran to obtain nuclear weapons.”

Related: Russia’s Middle East Strategy Explained

The Iran-Israel spat continues to escalate while the EU, China, and Russia try to salvage the Iran nuclear deal. Meanwhile, analysts continue to speculate as to how much of Iran’s oil exports would be affected when the U.S. sanctions on Tehran return.

After oil prices rallied before the U.S. withdrawal from the Iran deal and immediately after it, prices snapped back two weeks ago as reports started to emerge that OPEC is considering stepping in to offset potential loss of supply from Iran and Venezuela.

Hedge funds and other money managers have reduced their bullish bets on oil prices in recent weeks, and shorts on U.S. oil last week were at their highest in six months, while short positions in Brent were at their highest since early August last year. Long positions in Brent dropped for a seventh week in a row, to the lowest since early last September.

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
Download on the App Store Get it on Google Play