oil

Trump Ended the Iran Nuke Deal and Oil Prices Declined

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Trump signed a document on Tuesday reinstating sanctions against Iran after announcing the U.S. withdrawal from the nuclear deal

 

West Texas Intermediate Crude fell 1.6 percent on the New York Mercantile Exchange. Brent Crude, the international standard, fell 0.71 percent. In the futures market, light sweet crude for June delivery declined 1.43 percent.

Earlier in the day, most oil prices had been even lower. Prices pared those losses after Trump’s announced a U.S. policy that was more immediate and left less wiggle room than many analysts expected.

In recent months, oil prices have moved up following a decision by OPEC and Russia to limit production to raise prices. Oil prices trade in a range selected by Saudi Arabia, which sets prices for crude oil much the way the Federal Reserve sets the price of overnight borrowing by banks. The Saudis pick their desired price level and let the volume float to clear at that price. This can break down when a global economic slump saps demand for oil but otherwise it puts Saudi Arabia in the position of setting oil prices.

This is likely the reason that oil prices did not move higher despite the fact that U.S. sanctions would require international companies to buy less Iranian oil or risk stiff penalties on business they do in the U.S. Saudi Arabia was one of the first countries to announce its support for the Trump administration’s policy, a move many market watchers believe signals that the Saudis will not allow prices to spike when Iranian supply is removed.

Read more: http://www.breitbart.com/big-government/2018/05/08/oilpricesirannukedeal/

U.S. To Become World’s Top Oil Exporter

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Oil storage

 

  • The Citi projection is for both crude and finished (refined) petroleum products, not only crude oil. Saudi Arabia remains the world’s largest exporter of crude

By Tim Daiss – May 02, 2018

 

As global oil markets shift their attention from U.S. shale oil production back to a resurgent Saudi Arabia and Russia and geopolitical concerns bearing down on oil prices, Citigroup said last Wednesday that the U.S. is poised to surpass Saudi Arabia next year as the world’s largest exporter of crude and oil products.

The U.S. exported a record 8.3 million barrels per day (bpd) last week of crude oil and petroleum products, the government also said Wednesday. Top crude oil exporter Saudi Arabia’s, for its part, exported 9.3 million bpd in January, while Russia exported 7.4 million bpd, the bank added.

However, it should also be noted that the Citi projection is for both crude and finished (refined) petroleum products, not only crude oil. Saudi Arabia remains the world’s largest exporter of crude, though since January amid the OPEC/non-OPEC production cut agreement that figure has fallen. On April 10, the Saudi oil minister said that the kingdom planned to keep its crude oil shipments in May below 7 million bpd for the 12th consecutive month.

Saudi Arabia has also trimmed its oil production more than 100 percent of the output cuts it agreed to under the January 2017 production deal. In March, Saudi crude production was at 9.91 million bpd, below the deal’s output target of 10.058 million bpd.

Russia, however, also part of the global oil protection cut agreement, increased its crude oil production by 0.2 percent to 10.97 million bpd in March, compared to the previous month and an 11-month high.

 

Read more: https://oilprice.com/Energy/Energy-General/Citi-US-To-Become-Worlds-Top-Oil-Exporter.html