Published: Mon, October 08, 2018
Money | By Ralph Mccoy

Oil drops as U.S. considers granting some waivers on Iran crude sanctions

Oil drops as U.S. considers granting some waivers on Iran crude sanctions

Crude futures steadied on Friday after climbing to four-year highs earlier this week, and both Brent and U.S. crude marked weekly gains ahead of USA sanctions on Iranian oil exports. The U.S. State Department continues to ask for OPEC to tap its reserve supplies.

"The Saudis won't flood the market and they don't want to see it oversupplied", said Giovanni Staunovo, an analyst at UBS Group AG.

Brent fell a mere 20 cents to $84.38, while WTI rose 1 cent to $74.34, these numbers said to be the outcome of the US unemployment rate falling to a 49 year low of 3.7 percent and somewhat mitigating fears about the sanctions.

US West Texas Intermediate (WTI) crude futures were up 55 cents, or 0.7 percent, at $74.88 a barrel.

The increased production also failed this week to prevent premium crude prices from hitting a four-year high above $86 a barrel in London trading.

Futures in NY increased 0.3 percent, on course for a fourth weekly gain.

Trump has been blaming the Organisation of Petroleum Exporting Countries for rising crude prices ever since he decided in May to tear up the nuclear agreement with Iran and re-impose sanctions. Since August, the pull-back barely affected the 18% gain in oil prices which is the highest since 2014.

President Donald Trump moved to restore tough USA penalties in May after withdrawing from Tehran's nuclear accord with world powers.

Haiti struck by M 5.9 quake; at least 11 dead
The quake, which was felt across the country, struck at 8:10 pm (0010 GMT Sunday) at a shallow depth of 11.7 kilometers. Rescue workers reported the collapse of part of a hospital and an auditorium as the quake hit on a rainy evening.

IMac Pro, MacBook Pro third-party repairs still possible, confirms iFixit
This is probably due to the advanced security features of the Apple T2 chip that could be vulnerable after unauthorized repairs. AppleCare is much like insurance which you may never actually use - which ends up putting "free" money in Apple's pockets.

Ronaldo ready to play for Juve amid rape allegation
Last week, Kathryn Mayorga filed a civil lawsuit in the USA saying she was raped by Ronaldo in Las Vegas in 2009. Another headline said "World of Juve shaken" after the club's share price plunged nearly 10 percent on Friday.

Russia's involvement in the deal may seem surprising given that Russia publicly vowed in August to do "everything necessary" to protect its shared economic interests with Tehran - including the estimated $50 billion in Russian investments in Iran's oil sector that Russia has said will continue despite US plans to sanction the Iranian oil and gas sectors beginning on November 4. India is trying to import crude oil to Iran by $ 1.25 million tonnes of imports from the Indian Oil Corp (IOC) Mangalore.

Meanwhile, the US Energy Information Administration (EIA) reported a huge increase in weekly crude oil inventories.

Prices might hit US$100 this autumn as USA pressure stymies exports from Iran, OPEC's No. 3 producer, Russian Minister of Energy Alexander Novak said.

"Near-term spare capacity is effectively maxed out", said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd.

However, Goldman Sachs says the rally may not last.

"We expect fundamentals to gradually become binding by early 2019 as new spare capacity comes online. pointing to the global market eventually returning into a modest surplus in early 2019". Supply concerns from Iran, increased USA stockpiles and reports about Russian Federation and Saudi Arabia raising production kept the crude counter busy.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Like this: