How will the Iran deal collapse impact crude prices

18 May, 2018, 09:33 | Author: Genevieve Gibbs
  • An oil drilling rig off the US Pacific Ocean coastline. Energy agency says US likely to increase output. Eugene Garcia  EPA

Iran's oil production has declined and is expected to continue to do so when USA sanctions are reimposed and Venezuela's production has also reduced dramatically as the country has not invested enough in its industry. It is the highest level since October 2016 as per the data from shipping and Industry sector.

In its monthly report, the Paris-based IEA cut its forecast for 2018 global demand growth to 1.4 million barrels per day, from 1.5 million bpd.

Considering the fact that India is one of the highest importers of crude oil in the world, the prediction is a huge concern.

"I expect that Venezuelan production will continue to decline and the upcoming elections hold the spectre of the U.S. imposing additional sanctions on Venezuela that may hasten the loss of supply", said Andrew Lipow, president of Lipow Oil Associates, a consultancy in Houston. Earlier, US president Donald Trump announced US'S withdrawal from an agreement signed between United States, Iran and other major powers of the world. The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE), and Merey (Venezuela).

Three confirmed dead after severe storms in the Northeast
A National Weather Service team will be traveling to Sullivan, New York , on Wednesday, where a possible tornado was reported. CT officials said men in New Fairfield and Danbury were killed Tuesday in separate accidents when trees fell on their trucks.

"US shale can not solve the current oil supply problems", it said, arguing that USA oil would not be sufficient to offset production losses from Iran, Venezuela and Angola. "Surely initially it will be hard to make payments to Iran".

Over the last three years, the two countries have been a seesaw of production.

"We can probably expect further devaluation of currency and panic in the market". This was not far off Tuesday's $71.92 a barrel - also a level not seen since November 2014.

"And on top of it, you have the announcement on Iran, which is pushing the price up", said Pouyanne.

Celtics survive 42-point night by LeBron, down Cavaliers 107-94
With James on the bench, Semi Ojeleye got the line for two and Greg Monroe scored inside for an 11-point lead with 11:14 to go. The sequence lit a fuse that had been dampened by the first-quarter offensive barrage of a clearly motivated LeBron James.

However, while the USA has left the Joint Comprehensive Plan of Action (JCPOA) agreement, fellow signatories, the UK, Germany, France, Russia and China, have assured that they will stick to the agreement.

Some media reports said Iran and the European countries involved in the deal were keen on continuing to comply with it.

On currency markets, the dollar has benefited from bets on higher US rates, keeping it around multi-month highs against its major peers.

As per oil firms' estimates, after the lifting of sanctions on Iran past year, money in the rupee account of UCO Bank has declined to Rs 2,000 crore from a high of Rs 20,000 crore.

Indonesian police kill one, arrest several in Surabaya raids
Video footage showed policeman Roni Faisal rushing towards the distraught little girl - standing among the remains of her family. One of the most deadly attacks in Indonesia involved multiple bombs that went off inside and outside nightclubs in 2002 in Bali.

"We are used to conducting business even with sanctions in place", said another Iranian source.


  • Six Senate Democrats Helped Republicans Confirm Torturer Gina Haspel

    Six Senate Democrats Helped Republicans Confirm Torturer Gina Haspel

    During her confirmation hearing, Haspel repeatedly declined to say whether harsh interrogation techniques were morally wrong. Haspel also received the support of the editorial boards of New York Post, The Wall Street Journal, and The Weekly Standard.
    Google's new music service is YouTube Music

    Google's new music service is YouTube Music

    There will also be a "reimagined" mobile app and new desktop player, which we can get a faint idea of from the picture above. Google is going to head to head with popular music streaming services like Spotify and Apple Music with YouTube Music .
    Putin Met With Assad in Sochi - Kremlin Spokesman

    Putin Met With Assad in Sochi - Kremlin Spokesman

    Mr Putin's spokesman said Mr Assad had chose to "send a delegation to the UN" to discuss reforming the country's constitution. He also visited Putin in Moscow in October 2015, soon after Russian Federation launched its military operation in Syria .
  • Italy's populist coalition plans spark social media satire

    Italy's populist coalition plans spark social media satire

    The bloc's budget rules require it to cut the debt pile aggressively under the "fiscal compact", which both parties want scrapped. Di Maio's 5-Star Movement is Parliament's single biggest party, after winning some 32 percent in the March 4 election .
    Hamilton wants to win title with 'perfect' weekends

    Hamilton wants to win title with 'perfect' weekends

    Next up, it's Mercedes who have overcome a slow start to the season to be frontrunners in the constructor's championship. Such was the pace of Hamilton in clean air ahead that by the 15th lap, he had already opened a 6.4-second gap on Vettel.
    Planes warned over ash plume from Hawaii volcano

    Planes warned over ash plume from Hawaii volcano

    So far, at least 37 structures - 28 of which are homes - have been destroyed by lava that shot more than 500 feet into the air. But water may not be entering the crater, as feared, and gas and steam may be safely venting, scientists said.
  • Standalone 'Star Wars' film about Lando Calrissian in the works

    Standalone 'Star Wars' film about Lando Calrissian in the works

    Solo's set-up follows that formula, but without the universe-altering mythology of the ancient battle between Jedi and Sith. The video [see below] starts off with a shot of Han ( Alden Ehrenreich ) hanging his lucky dice on a speeder auto .
    Man City soak up fans' adulation in victory parade

    Man City soak up fans' adulation in victory parade

    This is a group of players that is still improving and will be hitting the peak years of their career over the next half-a-decade. Ex-Barcelona and Bayern Munich boss Guardiola beat off competition from five other managers to win the prize.
    Shapiro: Media Acting as 'Propaganda Wing' for Hamas With Protest Coverage

    Shapiro: Media Acting as 'Propaganda Wing' for Hamas With Protest Coverage

    Turkey lowered its flags to half-mast to mark three days of mourning and said it was willing to take in wounded Palestinians. The UN Security Council is meeting to discuss the violence, although it is not clear what might come out of the session.
  • Murphy Brown has a new gig

    Murphy Brown has a new gig

    The final new shows that made the cut for the fall lineup are dramas Federal Bureau of Investigation and God Friended Me . Jay Hernandez ( Suicide Squad ) steps into the role of Thomas Magnum , which was played by Tom Selleck in the original.
    Michigan State Comes To $500 Million Settlement With Nassar Victims

    Michigan State Comes To $500 Million Settlement With Nassar Victims

    The US Department of Education is also investigating the public university's handling of reports of Nassar's abuse. Of the total, $425 million will go to current claimants, meaning the 332 people being represented by the lawyers.
    Slain Indiana cop's son greeted by officers on return to school

    Slain Indiana cop's son greeted by officers on return to school

    Two weeks ago, IN police officer Rob Pitt was shot and killed by a homicide suspect during an exchange of gunfire. Christopher Wolfe, 21, was suspected of shooting and killing a 26-year-old man at a home in Terre Haute.


Donald Glover Will Get His Own Movie For 'Lando Calrissian'
After decades without any clear LGBTQ representation , Solo: A Star Wars Story is hinting that Lando Calrissian is pansexual . This certainly makes us think that Lando is a fan of one of the GFFA's most risky sports: podracing.

Suicidal Thoughts, Attempts On The Rise Among Young People: 'It's A Critical Public-Health Crisis Right Now'
The outcomes suggest that the rate of suicidal attempts increased in the fall and spring, and lowest in the summer. The researchers called for more studies of possible gender differences in youth mental health.

Hawaii volcano spews 6 mile-high plume of ash, could blow again
In the 1960s, an eruption at Kilauea stopped for a year and a half before the volcano suddenly resumed spewing ash. Despite the volcanic activity , Hoyt said most people on the island are going about their day as normal.

Europe seeking quick solution to save Iran nuclear deal -Mogherini
European participants in the nuclear deal with Iran should provide within 60 days guarantees on the preservation of the agreement.

25-year-old posed as teen to play high school basketball
A 25-year-old man is facing charges after posing as a 17-year-old so he could once again play on the high school's basketball team.

Pep Guardiola named manager of the year
When I was a little boy I always say England was a little bit like a paradise. 'Everybody wants to be here. Of course, always I think the records are a outcome of our game, our consistency.

Zuckerberg agrees to face EU Parliament over Facebook data use
Zuckerberg has so far declined to appear, to the British lawmakers' annoyance. Some MEPs will likely be upset by the behind-closed-doors arrangement.

Tiger Woods: "I'm not that far off from winning"
And so he did, shooting a 3-under-par 69 to finish in a six-way tie for 11th place, seven shots behind victor Webb Simpson. Not to really mis-hit a shot and only shoot three under par is just weird, because I played much better than that'.

Reported STDs Reach Record High in California
According to the CDC, most people with chlamydia don't have symptoms , or those symptoms may not appear for several weeks. CDPH Director and State Public Health Officer Karen Smith said that STDs can be prevented by consistent use of condoms.

Facebook Suspends Hundreds of Apps That Accessed Your Data
Today Facebook announced that after auditing "thousands of apps", it found and suspended "around 200" that were suspicious. In 2014, Facebook changed its policies so developers could no longer access the information of their app users' friends.