Japan’s major oil wholesalers are preparing to suspend crude oil imports from Iran in October, amid fears Washington will sanction countries importing Iranian crude, local media reported.
Thanks to this ever escalating trade war, China’s manufacturing growth was at its slowest in more than one year this August. “You’ve got the strong dollar, which is another factor”.
“We still have two months to go before November 4 and we expect to see further decreases in shipments to OECD Asia, Europe and India”, said Michael Tran, analyst at RBC Capital Markets, adding he anticipates Iran deepening discounts for its crude to find buyers.
Oil price could rise 30%.
Speaking of crude oil, it’s consolidating in a tight range of $69.30 – $70.30. Front-month prices have soared nearly 50 per cent over the past year, and were at $79.17 a barrel at 11:01 am in London on Tuesday.
Oil prices rose on Monday, supported by concerns that falling Iranian output will tighten markets once US sanctions bite from November, but gains were limited by higher supply from OPEC and the United States.
Rouhani said Iran has started moving its main export terminal in Kharg on the Persian Gulf to Jask in the Sea of Oman.
People often focus on the supply side. but what happens if China reduces its consumption? US markets were closed on Monday for Labor Day. The market will look to other producers such as Russian Federation to fill the void, even as Nigeria’s oil minister remains confident of OPEC’s ability to pump more, said the Singapore-based analyst.
“And I think, and many people agree with me, that the demand will be impacted – so that’s not good for us”. The country produced an average of 11.21 MMbopd in August, according to data emailed Sunday by the Russian Energy Ministry’s CDU-TEK unit.
But the Cosmo official added that the company has yet to make a final decision on its Iranian crude oil policy as the Japanese government is still in the midst of talks with the United States government to secure an exemption from looming sanctions.
Crude jumped on Tuesday as oil companies shut dozens of offshore platforms in anticipation of damage from Tropical Storm Gordon.
French oil-and-natural-gas company Total has “officially left” Iran in the face of the USA threats, Iran’s oil minister announced in August. But the imports were still among the lowest this year due to a drop-off in demand from the country’s smaller independent refineries.
The strait is the world’s most important oil chokepoint with roughly 35 percent of all seaborne oil passing through it, according to the US Energy Information Administration.