Iranian Oil to Be Available for Intl Traders at Energy Bourse

Iranian Oil to Be Available for Intl Traders at Energy Bourse

Brent for December settlement was 51c lower at $76.38 a barrel on the London-based ICE Futures Europe exchange, after rising 72c on Thursday.

All the while, global economic growth has been strong for several quarters and oil demand continues to grow.

Majid Reza Hariri, an official with the Iran-China Chamber of Commerce and Industries, denied the report, saying the Bank of Kunlun has not actually halted service to Iran's oil exports, but rather has notified commercial account holders that in case they have an open letter of credit or unfinished payments, they should complete them by November 1.

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Oil prices doubled. Just this week oil prices fell by 5% after Saudi Arabia said it would cover any supply disruptions from the sanctions on Iran's petroleum exports. The minister's remarks are somewhat surprising as they come amid worry about loss of supply from Iran once USA sanctions enter effect next month. What makes the comments confusing, however, is the fact they come on the heels of earlier statements by Falih that Saudi Arabia is ready to increase production to up to 12 million bpd and invest in boosting its spare capacity.

Using techniques such as hydraulic fracturing and horizontal drilling, US oil drillers figured out how to get crude oil from ultradense shale rocks in North Dakota, Texas and Oklahoma. The sanctions will take effect from 4 November. EIA also forecast that total global liquid fuels inventories to decrease by 200,000 barrels per day in 2018, followed by an increase of 280,000 barrels per day in 2019.

"It became even more crucial for the Saudis to boost supply to meet US demand for lower oil prices because without America's support, it'll be hard for the kingdom to avoid global outcry", Kim Kwangrae, a commodities analyst at Samsung Futures Inc., said by phone. In recent weeks, the oil market has carefully watched growing strains in the U.S. -Saudi relationship over the killing of Saudi journalist Jamal Khashoggi. The crude oil was already under the pressure after energy minister of Saudi Arabia tried to fulfill all the worldwide demand of crude by assuring them. The global benchmark marked a weekly loss of about 2.7 per cent and is down about $10 in three weeks. At long term with sufficient oil supply by major oil exporter Iran's role in world oil market may decrease, Iran needs to keep its share in regional and world oil market. "It can be seen that Iran's oil export will decrease more than %50 in contrast to post nuclear agreement". This situation could add to the global supply woes when the time comes.

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