News was released this week announcing that the U.S. would be reinstating sanctions against Iran, specifically the Iranian government’s purchase of United States Currency (Dollar), Tehran’s trade in gold, other precious metals, and its automotive industry. President Trump stated as well that if Iran didn’t comply with the reinstatement of the first wave of sanctions that his administration would look into targeting Iran’s port industry as well as its energy shipping and ship building industries. These second wave of sanctions could ultimately have an impact on global supply as well as the worlds spare capacity cushion of oil. Sanctions against Iranian Oil will impact another player in the trade war against the U.S., China. China is the biggest buyer of Iranian crude oil and with Trump and his administration exchanging tariff blows back and forth it will be a test of time to see how long China will resist communicating with President Trump and the United States.
WTI Crude is up +1.12% today to a $67.61 as reports from the EIA (Energy Information Administration) raised its global oil demand growth by 110,000 bpd to 1.5 million barrels for 2019. Reports also mentioned how global supply has risen by 300,000 barrels a day last month resulting from increased output from Russia and other OPEC members. September Heating oil rose +1.54% to $2.14 per gallon while September RBOB gasoline also increased $1.48% to $2.04 per gallon.