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Oil prices rise on signs Iranian crude exports are falling further in October

Oil pump
Oil prices rose on Tuesday on signs Iranian oil exports this month have fallen from September ahead of U.S. sanctions against Tehran that are set to start in November

Oil prices rose on Tuesday on signs Iranian oil exports this month have fallen from September ahead of U.S. sanctions against Tehran that are set to start in November, Reuters reported on Tuesday.

 

 

International benchmark Brent crude for December delivery rose 27 cents, or 0.33 percent, to $81.05 per barrel by 0325 GMT.

 

U.S. West Texas Intermediate crude for November delivery was up 12 cents at $71.90 a barrel.

 

Iran has exported 1.33 million barrels per day (bpd) to countries including India, China and Turkey in the first two weeks of October, according to Refinitiv Eikon data. That was down from 1.6 million bpd in September, the data showed.

 

The October exports are a sharp drop from the 2.5 million bpd exported in April before U.S. President Donald Trump withdrew from a multi-lateral nuclear deal with Iran in May and ordered the re-imposition of economic sanctions on the country, the third-largest producer among the members of the Organization of the Petroleum Exporting Countries (OPEC).

 

The sanctions on Iran's petroleum sector will go into effect on Nov. 4.
"Uncertainties will remain until Nov. 4 when it would be clear whether the United States would want to cut Iran oil exports to zero or grant waivers," said Vincent Hwang, commodity analyst at NH Investment & Securities in Seoul.

 

"Brent prices are likely stay in the range of $80 a barrel or slightly higher, while WTI prices are likely to be $70-$75 a barrel," Hwang added.

 

 

With the world's only sizable spare oil output capacity, Saudi Arabia is expected to export more to offset the loss of Iranian oil supply from the sanctions.

 

Saudi Arabia's Energy Minister Khalid al-Falih said on Monday at a conference in New Delhi that the kingdom is committed to meeting India's rising oil demand and is the "shock absorber" for supply disruptions in the oil market.

 

Last Modified: Tuesday، 16 October 2018 12:30 PM
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