Iran's reliance on its own oil tankers grows, even as flows slump

Iran's reliance on its own oil tankers grows, even as flows slump

But being on the same side on Iran sanctions doesn't make India friends with China on trade.

With China, India and Turkey already on board to continue Iranian oil imports, Japan also says it is considering continuing shipments amid warnings that new U.S. sanctions on Tehran could push prices above $90 a barrel.

US West Texas Intermediate (WTI) crude futures were up 1 cent at $69.02 barrel. Brent, the worldwide benchmark, rose 1.3% $74.65 a barrel.

The heightened fear of a looming supply shock prompted Amrita Sen, chief oil analyst at Energy Aspects, to tell CNBC, "As we go more towards (the fourth quarter) ... that's when we really see the risk of prices going well into the $80s and potentially even into the $90s, but very critical is how much Iranian production we lose".

The US, which in May pulled out of a landmark nuclear deal and said sanctions will be re-imposed on Iran within 180 days, has threatened to cut off access to the American banking system for foreign financial institutions that trade with Tehran.

Iran's oil industry is expected to be hit in the next round of economic penalties against the country, set to take effect in November.

Chinese oil buyers had already slowed their purchases of United States oil to avoid a likely import tariff threatened by Beijing amid the escalating trade dispute between the world's two largest economies.

Congressman Chris Collins Arrested For Insider Trading
The House Ethics Committee had been investigating the allegations against Collins since August of 2017. This led to three trades, it is alleged, that helped the defendants avoid $768,000 USA in losses.

Gasoline stocks USOILG=ECI rose by 2.9 million barrels, compared with analysts' expectations in a Reuters poll for a 1.7 million barrel drop. But with opposition from other signatories of the agreement, especially among European allies, Sayed said it's becoming hard to guess how many barrels will be off the market by November.

He noted that: "Anyone doing business with Iran will NOT be doing business with the United States". Meanwhile, the USA said Tuesday it will begin imposing tariffs on an additional $16 billion in Chinese imports in two weeks. "Despite some comments from U.S. officials on possible exemptions, we believe there has been no shift in the administration's policy stance on Iran".

However, a US plan to reduce Iran's oil exports to zero will not succeed, Iranian Foreign Minister Mohammad Javad Zarif was cited as saying by an Iranian newspaper on Wednesday.

However, it is rumored to be new sanctions on Iran.

That came despite a pledge by the Saudis and top producer Russian Federation in June to raise output from July, with Saudi Arabia promising a "measurable" supply boost.

But analysts remain widely skeptical Saudi Arabia would raise output by a large enough amount.

Iran's oil ministry said last month it doesn't use the Bab el-Mandeb strait at southern end of Red Sea for its crude exports after Saudi Arabia temporarily halted its own shipments through the waterway, due to an attack on two of its tankers.

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