Published: Sun, October 21, 2018
Money | By Armando Alvarado

Oil up but posts weekly loss on stock build, trade tensions

Oil up but posts weekly loss on stock build, trade tensions

Crude prices fell sharply Thursday, with the USA benchmark tallying a two-day drop of more than 4% following a fourth straight weekly climb in crude inventories that has seen domestic supplies swell by a total of 22 million barrels over that period.

USA sanctions on Iran take effect in a little over two weeks, and the Trump administration has already had quite a bit of success in knocking Iranian supply offline.

But now, with the US's withdrawal from Iran's nuclear deal in May and re-imposition of sanctions against Iranian economy, the issue has come again under the spotlight as an approach to counter the new round of sanctions.

India is continuing to engage with the USA and all other stakeholders regarding the S-400 missile deal with Russian Federation and import of crude oil from Iran following Washington's sanctions on Moscow and Tehran, the Ministry of External Affairs said on Thursday.

Nevertheless, the going to have to swallow some bit of cheating because Iran's oil exports are unlikely to fall to zero over the next few weeks.

Dalian, which hosts some of China's biggest refineries and commercial oil storage facilities, typically receives 1-3 million barrels of Iranian oil each month.

There is no way to wield the oil weapon, which would not shake the foundations of the U.S. -Saudi alliance on which the kingdom's defense depends, leaving it vulnerable to regional rivals, including Iran.

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In this photo from June 21, 2017, special counsel Robert Mueller departs after a meeting on Capitol Hill in Washington. But so far, they said, state and local officials have been able to prevent access or quickly mitigate these attempts.

Indian refiners also cut imports of Iranian oil purchases last month in a sign they are preparing for November.

Hyundai Motors has reportedly ended its cooperation with the Iranian company Kerman Khodro in the Special Economic Zone, Arg-e Jadid after the United States president announced it will re-impose sanctions on Iran. Among the stakeholders are the US, Iran and others.

A stronger US dollar made the dollar-priced commodity less attractive for holders of other currencies.

Kumar said India's "expectations" have been made known to the US side, adding India appreciated the statement made by US Secretary of State Mike Pompeo that intention of imposing sanctions on Iran is not to hurt India.

"The jury is still out on China's official stance", said Bjornar Tonhaugen, head of oil markets at Rystad Energy.

"We evaluate waivers on a case by case basis", said U.S. State Department spokeswoman Heather Nauert.

The European Union said last month it was considering setting up a Special Purpose Vehicle (SPV) to facilitate trade with Iran and said it could be in place before November. December futures settled 6 cents higher, the first time since May the spread between the first two contracts was in contango, where prompt-delivery oil is less expensive than deferred contracts. China's imports from Iran fell to 430,000 bpd in September, the lowest amount since 2016. The buyers wanted a lower price, but it was not offered; it is while the stock market's activity is based on supply and demand.

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