International Olympic Committee signs up USA crude in 1st ever term-tender deal

Oil rallies as Iran sanctions kick in

Oil rallies as Iran sanctions kick in

The price for Brent crude oil, the global benchmark, was up 0.15 percent as of 9:22 a.m. EDT to $72.39 per barrel.

Looking ahead to 2020-21, Della Vigna anxious that the impacts of the slowing pace of new projects will start to be felt, and USA shale will begin to decline; however, he said now is a flawless opportunity for "big oil" firms to negotiate better tax terms with governments and "do more activity - that doesn't necessarily mean more money".

Trump has said Saudi Arabia's ruler King Salman had agreed to his request and would soon raise oil output by up to 2 million barrels per day (bpd) to make up for shortfalls due to Iran. More sanctions targeting Iran's oil sector and Central Bank will come into effect in November.

Crude oil prices dropped below $68.00/bbl post-EIA. Affecting the demand side is the placing of tariffs on USA crude imports by China. We will monitor this week's figures for another increase in inventory levels which could see oil prices move lower.

Indian refiners' interest in USA crude will be welcome news to shale producers looking for buyers outside of China, which is likely to scale back imports as the trade dispute between the administration of President Donald Trump and Beijing escalates.

Singapore-based brokerage Phillip Futures said an escalating trade dispute between the United States and China has "unnerved investors on the prospect of lowered global oil demand growth". Along with oil, Asian stock markets also fell on Friday amid heightened global trade tensions, as the world's two biggest economies threaten ever more tariffs on each other's products.

"We continue to expect Brent crude oil spot prices to fall towards $70 per barrel by the end of 2018, as the market appears to be fairly balanced in the coming months", said Linda Capuano, EIA Administrator.

NBC News Reporters Want Donald Trump Banned from Twitter After Threatening Iran
And John Bolton, the president's national security adviser, is a well-known Iran hawk who has advocated for regime change. The agency reported all protests had taken place without official permission and were subsequently broken up by police.

Prices of the barrel of the West Texas Intermediate are trading on a weaker footing today after the EIA reported USA crude oil inventories decreased less than initially estimated by 1.351 mbpd during the week ended on August 3.

U.S. sanctions on Iran's energy sector are set to be re-imposed after a 180-day "wind-down period" ending on November 4.

Oil prices held steady on Wednesday, supported by a report of rising USA crude inventories as well as the introduction of sanctions against Iran. It also gives American producers greater inroads to the fastest-growing oil consumer, a market that's now dominated by Middle-Eastern suppliers.

Analysts estimated that Iranian production would drop further amid the restored sanctions and drive the oil price further up.

Earlier on Wednesday, government data showed China's imports of crude oil in July rose slightly after falling in the previous two months.

"We envisage that Iran views its threat to close the Strait of Hormuz, per se, as in fact more advantageous than its actual execution as closing the Strait has a regressive impact on Iran's interests as more than 80 per cent of Iran's oil exports pass through these narrow waters, and thus Iran will be cutting off its own economic lifeline", said Khoman. Nationwide inventories in the United States probably fell 3 million barrels last week, according to a Bloomberg survey of analysts before government data due on Wednesday.

Meanwhile, stockpiles of gasoline and distillates, which include diesel and heating oil, rose more than expected.

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