LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Oil rises as U.S. sanctions on Iran stoke supply worries

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Tue, Aug 07, 2018
10:00 pm
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

Oil prices rose on Tuesday after U.S. sanctions on Iranian goods went into effect, intensifying concerns that sanctions on Iranian oil, expected in November, could cause supply shortages.

Brent crude futures rose 66 cents, or nearly 1 percent, to $74.41 per barrel by 12:20 p.m. EDT (1620 GMT) and U.S. West Texas Intermediate (WTI) crude futures were up 27 cents at $69.28 a barrel.

Renewed U.S. sanctions against OPEC member Iran officially came into effect at 12:01 a.m. EDT. These sanctions did not include Iran`s oil exports. The country exported almost 3 million barrels per day (bpd) of crude in July.

The reimposed sanctions target Iran`s U.S. dollar purchases, metals trading, coal, industrial software and its auto sector.

U.S. sanctions on Iran`s energy sector are set to be re-imposed after a 180-day "wind-down period" ending on Nov. 4.

"It is a reality check that this is happening and that Iran`s oil exports will be hurt when the oil sanctions hit it in November," chief commodities analyst at Commerzbank Bjarne Schieldrop said.

U.S. President Donald Trump tweeted that the sanctions were "the most biting sanctions ever imposed".

"Anyone doing business with Iran will NOT be doing business with the United States," he added.

Many European countries, China and India, oppose the sanctions, but the U.S. government said it wants as many countries as possible to stop buying Iranian oil.

Iraqi Prime Minister Haider al-Abadi said his country opposes sanctions on Iran, but will abide by them to protect its own interests.

"The market continues to price in geopolitical risk from the reimposition of sanctions by the U.S. on Iran," said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. "The reports that Saudi Arabia`s production actually dropped in July continue to provide support for the market."

Saudi Arabia`s crude production dropped about 200,000 bpd last month, two sources at the Organization of the Petroleum Exporting Countries said on Friday, despite a pledge by the Saudis and top producer Russia to raise output from July, with Saudi Arabia promising a "measurable" supply boost.

Also supporting prices were a weakened dollar, McGillian said.

The dollar index was trading 0.2 percent lower. A weak dollar can lift the price of commodities, like oil, that are priced using the currency.

U.S. crude stockpiles expected to have dropped last week. Data from the American Petroleum Institute for U.S. inventories is due later on Tuesday at 4:30 p.m. EDT, followed by the government`s report on Wednesday morning.HEAT IMPACTS OIL

Analysts also warned that a global heatwave could affect oil demand.

Much of the northern hemisphere has been gripped by extreme heat this summer, pushing up demand for industrial and residential cooling.

This mostly affects demand for power fuels such as thermal coal and natural gas.

"With global demand remaining healthy and the global heatwave increasing oil demand, I think prices will remain well-supported in the near term," Hussein Sayed, chief market strategist at FXTM, said.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

Bihar fireman recruitment 2021: See application date and other details here

IMPLEMENTED NOW! Good news for government employees, PSU staff of this state - All details here

Tamil Nadu class 9, class 10 and plus results: Good news for students! Govt announces "all pass"

IRCTC Share price: Dolat Capital initiates coverage on with target of Rs 2650

7th Pay Commission Latest News: How pensioners will benefit from DA, TA, salary hike for central government employees?—EXPLAINED

CBSE class 10 Syllabus reduced in this subject: Attention students! CBSE board exam 2021 syllabus has been cut for social science subject; Know how to download

EXCLUSIVE: Anil Singhvi reveals what may be a booster shot for Rane (Madras), Bosch shares

Ramco Cements share price: Sharekhan maintains Buy rating with a revised price target of Rs 1150; know key risk

Naandhi Box Office Collections Worldwide: Shouting success! Blockbuster justice! Allari Naresh says thanks to fans for so much love

This Rakesh Jhunjhunwala stocks portfolio is in the news - see strategy

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved