USA re-imposed sanctions on Iran: Winners, Losers

16 May, 2018, 08:07 | Author: Brenda Erickson
  • Oil Prices Steady Amid US Sanctions Against Iran

Oil prices were mixed Tuesday, with the USA benchmark pulling back after hitting multiyear highs, even as turmoil in the Middle East continued to boost the global benchmark.

Both oil futures contracts hit their highest since November 2014 last week at 78 dollars and 71.89 dollars a barrel, respectively as markets anticipated a sharp fall in Iranian crude supply once USA sanctions bite later this year.

On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.5% at $71.33 a barrel.

USA sanctions on Iran will go back into force from November 5, meaning buyers have a six-month period during to "wind down" oil purchases. According to Goldman, global oil demand growth in the first quarter of 2018 is likely to have seen the strongest yearly growth since the fourth quarter of 2010.

The oil prices remain firm despite the output increase in U.S. oil rigs, with the experts estimating that the production may continue to rise for next over half-a-dozen months.

Oil prices have run up rapidly amid turmoil in the Middle East and the prospect of trade sanctions against Iran, and some investors have been looking for opportunities to take profits.

"We're very overextended", said Donald Morton, senior vice president at Herbert J. Sims & Co.

Even as the short term global supply outlook has become somewhat unsettled, world daily oil consumption is projected this year to increase from 97 million to 98.5 million barrels.

Volcano tourists have picked the ideal time to visit Hawaii
It opened over the weekend on the Big Island about 100 feet from Fissure No. 16, which spewed lava for about 250 yards. Scientists had expected such explosions by the middle of this month as Kilauea's lava lake fell below the water table.


However, imports have fallen this year, partly reflecting a cut in supplies to South Korea by the National Iranian Oil Co due to lower production and the start of a new splitter, sources have said. "Germany has said it will protect its companies from US sanctions, Iran has said French oil giant Total has yet to pull out of its fields and all the while it seems the Chinese are ready to fill the void created by the USA", he said.

The bottleneck in North America likely contributed to a 4.9 million barrel rise in USA crude oil inventories, to 435.6 million barrels, that the private American Petroleum Institute reported on Tuesday.

Markets have generally tightened as the Organisation of the Petroleum Exporting Countries (Opec), led by Saudi Arabia, has been withholding supplies since 2017 in order to push up oil prices.

That means oil's declines may be limited.

"The sanctions... can potentially accelerate this process of establishing a 3rd (oil) benchmark", White said.

There were also signs of continued strong demand.

Gasoline futures rose 0.28% to $2.2064 a gallon.

Futures in NY gained 0.2%.

Recommended:

  • Redskins' Hall announces retirement after 14 seasons

    Redskins' Hall announces retirement after 14 seasons

    The NFL's active leading interceptor prior to his announcement with 43 career INTs, Hall returned five of those for touchdowns. A three-time Pro Bowler, Hall's last several seasons have been derailed by injuries.
    5 things to know about Trump's plan to lower drug prices

    5 things to know about Trump's plan to lower drug prices

    Washington's underwhelmed response to Trump's announcement of the drug pricing initiative last week put officials on the defense. Multiple policy changes aim to bring more competition to Medicare Part D plans and to revise reimbursement under Part B.
    More illnesses reported as salmonella outbreak traced to eggs grows

    More illnesses reported as salmonella outbreak traced to eggs grows

    The FDA warned that Salmonella Braenderup can cause fever, diarrhea, nausea, vomiting and abdominal pain in healthy persons. They also noted employees touching dirty floors, equipment and their bodies without washing their hands.
  • Plane Makes Emergency Landing After Cockpit Window Breaks at 32000 Feet

    Plane Makes Emergency Landing After Cockpit Window Breaks at 32000 Feet

    Zeng Jun, one of the passengers, told Chengdu Business Daily: 'The plane suddenly descended after flying about an hour in the air. Reports from yesterday also said 27 flight passengers claimed to be unwell after the incident and had to be hospitalised.
    Gary Rowett says Derby lacked composure in play-off defeat to Fulham

    Gary Rowett says Derby lacked composure in play-off defeat to Fulham

    Fulham will face either Aston Villa or Middlesbrough in the Championship playoff final on May 26. Fulham head to Wembley for the first time since they lost the FA Cup final to West Ham in 1975.
    Taliban in Afghanistan enter Farah city bordering Iran

    Taliban in Afghanistan enter Farah city bordering Iran

    The fighters launched the attacks from four directions on the city, which has over 50,000 residents. Local media reported that Taliban forces was close to taking over a prison in the city.
  • Palestinians thank Canada for not supporting United States  embassy move to Jerusalem

    Palestinians thank Canada for not supporting United States embassy move to Jerusalem

    He also stated that the US embassy was a "new settlement" in Jerusalem , as reported by Israeli daily Haaretz. Kuwait's ambassador to the United Nations , Mansour al-Otaibi, said he planned Wednesday to propose a U.N.
    Leaders Weigh in on Governor Rauner's Controversial Death Penalty

    Leaders Weigh in on Governor Rauner's Controversial Death Penalty

    Lawmakers can turn Rauner's changes into law through a simple majority vote. "This is a major policy change", said Koehler. Bruce Rauner proposed Monday, it might not have much of an effect on the strategy of criminal defense attorneys.
    Thomas Tuchel named as new PSG manager

    Thomas Tuchel named as new PSG manager

    Emery, who on Sunday was named as France's coach of the year, will lead the side for the last time against Caen this weekend. However, despite this success, the club and manager parted ways by mutual consent after clashing over transfer dealings.
  • Author Tom Wolfe Dead At 88

    Author Tom Wolfe Dead At 88

    Wolfe was hailed a literary icon, and his writing style and approach to reporting even saw him coin the term "new journalism ". Author and journalist Tom Wolfe died Monday at a Manhattan hospital, his agent Lyn Nesbit confirmed to the Los Angles Times .
    Packers Reportedly Not Interested in WR Dez Bryant

    Packers Reportedly Not Interested in WR Dez Bryant

    But he's going to partner with a great quarterback and have somebody who he feels like can contend for a championship. Witten pointed out that Bryant has just about every quality that Rodgers would love in a receiver.
    Raleigh's Webb Simpson wins The Players Championship

    Raleigh's Webb Simpson wins The Players Championship

    The 14-time major victor fell a few feet short of providing the first real drama Sunday on the Stadium Course at TPC Sawgrass. That the headlines will focus on a man who ended up outside the top 10 underlines the fact Woods remains golf's biggest draw.


Popular

Apps Suspended in Facebook's Ongoing Internal Data Misuse Investigation
Archibong says Facebook plans to launch thorough investigations into each of the ~200 apps to determine if they misused user data. Once the second phase is complete, Facebook users will be notified via a Facebook website if their personal data was jeopardized.

Upper West Side nanny to be sentenced in killing of 2 children
When Ortega didn't arrive on time Krim grew concerned and returned to her home to check on the children. The two children had been stabbed multiple times with a kitchen knife, reports The New York Times .

CBI Files Chargesheet in Nirav Modi Case, Names ex-PNB Head
It has been revealed that these officials did not follow circulars issued by the central bank on the SWIFT control system in 2016. Trouble is mounting for India's top banker Usha Ananthasubramanian who is now the CEO and MD of Allahabad Bank.

Garver's 12th-inning RBI double leads Twins past Angels
Simmons cut the margin to 3-2 in the sixth and Upton got his second RBI in the seventh, driving in Calhoun to tie the score at 3. Angels reliever Keynan Middleton threw just 12 pitches in the eighth inning, heading to the dugout with a 1-1 count on Rosario.

First primary since congressional redistricting in Pennsylvania
The primaries will set the stage for the general election this fall, when Democrats will be vying to pick up several House seats. There are 46 polling places, or precincts, in Venango County, 42 in Clarion County and nine in Forest County.

Hibs hold Rangers in 10-goal draw as Aberdeen clinch second place
Everything like this is going to get Gers fans excited as they wait to see what the latest news to come from Ibrox as. But Rangers hit back with James Tavernier, Jordan Rossier and Bruno Alves levelling it up before half time.

Centre submits Cauvery draft scheme in Supreme Court for approval
The Centre has also reportedly stated that the headquarters of this yet-to-be-named authority will be in Bengaluru. Out of the 419 tmcft allocated to Tamil Nadu, 192 tmcft would be supplied by Karnataka.

Iran and Israel are shooting at each other in Syria. Why?
Last month, an attack on Syria's T4 air base in the central Homs province killed seven Iranian military personnel. The sanctions issue has added to tensions between the USA and its European allies over the nuclear deal.

Old man Rooney head for DC United shift
Allardyce said. "Because if they don't play well you can't select them and if they do play well then they stay in the team. The former England manager has had a troubled relationship with Everton fans, who are unhappy at his style of play.

Indonesian family that bombed churches well off, friendly
Although considered Indonesia's largest pro-IS coalition, JAD's structure and links to the worldwide terror network are murky. Later in the day, police said another family attempted to carry out an attack the Surabaya suburb of Sidoarjo.