Published: Mon, October 22, 2018
Money | By Bruce West

Debate over offering crude oil at IRENEX to tackle sanctions

Debate over offering crude oil at IRENEX to tackle sanctions

Crude prices fell sharply Thursday, with the US benchmark tallying a two-day drop of more than 4% following a fourth straight weekly climb in crude inventories that has seen domestic supplies swell by a total of 22 million barrels over that period.

US West Texas Intermediate crude for October delivery CLc1 was up 27 cents, or 0.4 percent, at $68.92 a barrel by 0124 GMT.

An OPEC internal report says rising crude oil inventories and increased production in the U.S.

During 2017, Iran was Turkey's top crude oil source, accounting for 11.5 million tons of its total purchases nearing 26 million tons, followed by Iraq and Russian Federation.

us crude inventories rose 6.5M barrels last week, almost 3x analyst consensus expectations, even as USA crude production fell 300K bbl/day to 10.9M bbl/day as offshore facilities closed temporarily due to Hurricane Michael.

President Donald Trump on Thursday acknowledged for the first time that dissident journalist Jamal Khashoggi is likely dead and saw there would be “very severe” consequences if it was determined that Saudi rulers were behind it, without specifying what they would be.

Against this backdrop, crude oil prices spiked late this summer before cooling off last week when the USA stock market plunged.

He also said that the issue was discussed here with ministries by the US Special Representative for Iran, Brian Hook. But equities turned sharply lower in late morning trade, and the oil market fell to session lows. Oil producers in the Permian basin have started selling a new stream of light crude, said people familiar with the matter, securing a market for the less dense oil being pumped from the largest US shale play.

The gains were supported by U.S. -Saudi tensions after Trump pledged "severe punishment" should the kingdom be linked to Khashoggi's disappearance. Although US has offered both F-16 and F-18 fighter aircraft to India, it will be easier in Washington to make a case for moving the F-16 production line to India.

On May 8, President Trump pulled the USA out of a 2015 nuclear pact with Iran reached by his predecessor Barack Obama and other world powers, the U.K., France, China, Russia and Germany, and ordered tough US sanctions on Tehran. "That comes after prices dropped sharply on Wednesday as US crude stockpiles surged more than what the market had expected".

Kardor said Iran was scheduled to sign a new oil contract with a foreign company within two weeks, ISNA reported.

WASHINGTON - Turkey's top refiner, Tupras, is in talks with U.S. officials to obtain a waiver allowing it to keep buying Iranian oil after Washington reinstates sanctions on the Islamic Republic's energy sector in November, industry sources said.

And then there's Saudi Arabia, the world's largest oil exporter.

On Oct 9 the International Monetary Fund cut its global economic growth forecasts for 2018 and 2019, partly due to the toll trade policy tensions and the imposition of import tariffs were taking on commerce.

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