Oil ETFs Continue to Slip on Surprise Inventory Injection

Leroy Wright
November 9, 2018

Earlier this week, Mr. Zanganeh wrote to OPEC complaining that some members of the so-called Joint Ministerial Monitoring Committee - which consists of all OPEC and non-OPEC countries - "openly" side with the US regarding sanctions on Iran, The Associated Press reported. The first would be that Mr Trump and his administration effectively blinked first in their dispute with Iran over its nuclear and missile programmes. In turn, the U.S. would give a waiver to India to continue the import of Iranian oil in progressively lesser quantities for six months.

A Saudi think tank is studying what happens to oil markets in a world without OPEC.

The API reported a draw in gasoline inventories for week ending November 2 in the amount of 1.2 million barrels. Iran is not a member of this committee, which it wants scrapped. Plans to link the port to the Iranian rail system, which connects to Afghanistan and on to Central Asia, featured in the U.S. State Department's decision.

The top USA diplomat has granted an exception to certain U.S. sanctions that will allow the India-led development of a port in Iran as part of a new transportation corridor created to boost Afghanistan's economy, a State Department spokesman said on Tuesday. "I could get the Iran oil down to zero immediately but it would cause a shock to the market". Economists are expecting a build of 2 million barrels in crude oil inventories which is sort of bearish in nature, but less bearish than 4.1 million builds during the previous week.

Juventus vs. Manchester United live stream
Marcus Rashford says Cristiano Ronaldo is his biggest inspiration in football and is amazed at the Juventus striker's longevity. A night of triumph for Manchester United in the Champions League produces glorious echoes of the Red Devils' European heyday.

The extra supply has caused a drop in crude prices, hurting income for other oil producers while helping Iran's foe Trump in the US midterm elections, Kazempour said. As Pompeo referred to the exemptions for the eight countries as "temporary", surely negotiations continue between the United States and India on how to satisfy Washington's sanctions aims and India's strategic necessities. All of them maintain that they will continue to trade with Iran. Since May, when Trump took Washington out of the nuclear deal, prices of bread, cooking oil and other staples have soared and the value of the rial currency has plunged. "The US has given waiver to some countries including India".

The report also quoted a Fitch solutions analyst as saying that the new sanctions would not lead to the collapse of the Iranian economy, as the country would be able to keep exporting a significant volume of its crude oil. In May 2018, however, Trump withdrew the United States from the agreement, making a return of sanctions all-but-inevitable.

Moreover, Trump's sanctions against Iran's financial sector essentially make 30 banks and their subsidiaries off-limits to foreign lenders, undermining its means to facilitate trade.

There was no need for India to cravenly accept the USA sanctions on Iran. The first round of U.S. sanctions were re-imposed in August and the second on Monday.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER