India Looks To Cut Crude Imports As Oil Prices Rally

Cornelia Mascio
Settembre 25, 2018

This hike might take place for the first time since the year 2014 as the market braces for the loss of Iranian supplies because of the US penalty.

Crude oil prices have jumped to the highest level since November 2014 as key producers like Russian Federation and OPEC are not increasing production, while Iran will soon be hit by USA sanctions on its energy industry. The recorded rise was $2.51 in a single day, leading to the largest price per barrel since 2015.

Brent crude futures were up 61 cents at $81.81 a barrel by 1121 GMT, having touched a session peak of $82.20, the highest price since November 2014. "If need be, we will talk to other countries for a coordinated effort".

"South Korea and Japan have completely stopped importing oil from Iran, and India has slashed it nearly twice". Iranian crude oil is now trading at $72.02, roughly up by 1.72%. In fact, it has been rising since early 2017, when the Organisation of the Petroleum Exporting Countries (OPEC), started halting the output to lift crude prices, together with other suppliers including Russian Federation.

"Undoubtedly the oil market is expected to be tight in coming months and, if OPEC's own numbers are to be believed, global oil inventories are to fall during the remainder of the year".

Unplanned disruptions have further tightened the market, because of the route from Venezuela to Libya and Nigeria, just when the global demand approached 100 million bpd for the first time.

To counter the recent falling supply from Iran, OPEC and other oil producers are considering to raise the output of crude oil by 500,000 bpd.

It could cause Washington to take extraordinary steps, including the use of the Strategic Petroleum Reserve, to cool down the crude oil and other fuel prices ahead of the USA mid-term elections.

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