Oil price at IRENEX 'based on global market'

Roman Schwartz
November 2, 2018

The plan for selling export crude oil through energy stock market is carried out with the aim of diversifying crude oil export methods and participation of private sector in this plan.

With just days to go before US sanctions on Iran take effect, three of Iran's top five customers - India, China, and Turkey - are resisting Washington's call to end oil purchases outright, arguing there are not sufficient supplies worldwide to replace them, according to sources familiar with the matter.

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 President Donald Trump pulled out of the Iran nuclear deal formally known as Joint Comprehensive Plan of Action in May this year.

Russian Energy Minister Alexander Novak said on Saturday there was no reason for Russia to freeze or cut its oil production levels, noting that there were risks that global oil markets could be facing a deficit.

US stocks suffered big losses Wednesday, with the Dow Jones Industrial Average sinking over 600 points, which raised concerns that a possible slowdown in global economic growth could reduce oil demand.

"Saudi Arabia's production has reached 10.7 million barrels per day this month and we could increase production to 12 million barrels per day".

The Iranian government has prepared plans to counter the impacts of returning USA sanctions by maintaining oil exports above one million barrels per day, Jahangiri was quoted as saying by Press TV, Xinhua news agency reported on Sunday.

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Baghdad has been saying that it would abide by the USA sanctions on Iran. Earlier, private refining companies could only buy crude oil for exports of oil products, officials have said.

Investors awaited industry data on US crude inventories due to be released at 4:30 p.m. EDT on Tuesday.

The Trump administration has called on all buyers of Iranian oil to cut imports to zero but Iranian officials say that will not happen.

On the supply side, however, oil markets remain tense ahead of looming US sanctions against Iran's crude exports.

On Friday, crude oil futures prices of the United States gained 0.39 percent on concerns over less supply from Iran.

Other analysts were verbose in explaining the relatively straightforward scenario that despite persistent doomsday prediction from their own ranks, the crude market is well supplied and every indication is that it will continue to be so, thus effectively keeping a lid on prices.

Jahangiri further emphasized that the United States efforts to encourage Saudi Arabia to replace Iran's oil in markets were in vain, stressing that oil prices would nonetheless rise if Iranian supplies were to be cut off.

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