FileOPEC-Non-OPEC States Ready to Boost Oil Output- Saudi Minister
01 November, 2018, 19:46
The drop in oil exports to one million b/d can potentially bring about even more problems particularly in the absence of proper planning while corruption and mismanagement throughout the system make life even harder for Iranians.
This means Iran can not count on higher prices and more oil revenues to offset declining exports.
As the threat of sanctions began to emerge past year, Iran has been facing serious economic problems including high inflation, recession, unemployment, rising prices and dramatic fluctuations in exchange rates which marked a serious devaluation of the national currency.
Brent crude oil futures had fallen 58 cents to $77.04 a barrel by 1423 GMT. USA crude was on course to fall about 8.5 percent.
"Positives remain in short supply for oil bulls as a softening demand backdrop continues to underpin selling pressures", said Stephen Brennock, analyst at brokerage PVM Oil.
Speaking to Shana, Saeed Khoshroo, the director of worldwide affairs at NIOC, said the prices were charged based on the global oil prices; therefore, if the traded shipments were quoted lower during IRENEX Sunday session than the base price announced by NIOC in an earlier announcement, it was because of price fluctuations in the global market.
U.S. President Donald Trump said on Monday he thinks there will be "a great deal" with China on trade but warned that he has billions of dollars worth of new tariffs ready to go if a deal is not possible.
Meanwhile, amid a slowdown in economic growth, high oil prices are hurting consumers and could dent fuel demand, the executive director of the International Energy Agency (IEA) said on Tuesday.
Highly placed sources expressed confidence that India was unlikely to be affected by USA sanctions which demand that all countries should bring oil imports from Iran to zero. "The second one is global economic growth momentum slowing down", IEA chief Fatih Birol told an energy conference in Singapore.
Iran first began to enter into transactions for the sale of oil on the Tehran oil Bourse, which is part of a strategy to counter the US sanctions that will enter into force on 4 November.
US supply data also showed a sixth straight weekly rise in domestic crude inventories.
"Elsewhere, increased oil production from Saudi Arabia and Russian Federation have consequently eased concerns over a potential supply shock from the incoming Iranian sanctions", he added.
That's an increase of 10 million bpd since the start of the decade and means these three producers alone now meet a third of global crude demand.
Iran's First Vice-President Eshaq Jahangiri's remarks on Sunday come ahead of the looming USA sanctions on Tehran's oil sector, set to go into effect on November 4.