Published: Mon, October 08, 2018
Money | By Hannah Jacobs

Official says S Arabia unable to replace Iran’s oil

Official says S Arabia unable to replace Iran’s oil

However, India will buy 9 million barrels of Iranian oil in November, two industry sources said, indicating that the world's third-biggest oil importer is to continue purchasing crude from the Islamic republic.

"The recent increase in prices has gone too far, in our view", Barclays said in a note. The loss was of about 1.6%, but is expected to rise 2.5% for the week.

Global benchmark Brent crude futures for December delivery fell 42 cents to settle at $84.16 a barrel. But Russia, China, and the three European powers that also signed the deal have continued to honor it and are working with Iran on ways to evade the USA sanctions.

In its latest review last month, the Energy Regulatory Commission lowered oil prices on the backdrop of a 1.6 per cent fall in the average cost of Brent crude oil to $75.05 per barrel in August from $76.3 in July.

"Iran is attempting to interfere with the sovereign rights of the United States to take the lawful actions necessary to protect our national security, and Iran is abusing the ICJ for political and propaganda purposes", Pompeo told reporters.

On Wednesday, Reuters reported the details of a private and "secret" deal reached between Russian Federation and Saudi Arabia, a deal that was aimed at increasing oil output in order to offset the coming shock to oil prices that will follow USA efforts to starve Iran of its oil revenues. "The tightness of oil supply means that prices are particularly susceptible to shocks, and implies that risks are firmly to the upside", said World Bank economist Cesar Calderon.

In other news, the us oil drilling rig count fell for a third consecutive week, as rising costs and pipeline bottlenecks have hindered new drilling since June.

That is the longest streak of weekly cuts since October previous year.

Hedge funds cut their bullish wagers on USA crude in the latest week to the lowest level in almost a year, data showed on Friday.

Novak was not alone in predicting a return to three-digit price levels last seen in 2014. "I anticipate that November will be slightly higher", he said, potentially breaking the production record set in November 2016. There are echoes of 2008, when prices hit an all-time high above $140 a barrel and pledges of more supply only increased the fear of disruptions.

In its submission to the court, Iran argued that the United States had violated both the terms of a 1955 bilateral friendship treaty, the Treaty of Amity, and a core provision of worldwide law which protected the 2015 Iran nuclear agreement.

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