Spooky Sanctions in Sight

By: Sam Klein / October 31, 2018

As we head towards Iran oil sanctions and mid-term elections next week, we are focused on the following 4 topics

  • S. sanctions on Iran's crude exports beginning on November 4th.
  • Russia, Saudi Arabia and U.S. oil production is at nearing record highs.
  • China-U.S. trade war escalation and its impact on oil demand.
  • Oil prices set for their worst monthly performance since mid-2016.

 blog 10-31

Oil prices steadied on Wednesday after two straight down days as the energy sector braces itself for U.S. sanctions on Iran, and a calm falls over the recent volatility in the equity markets. WTI crude hit a two month low on Tuesday at $65.33/barrel. That has since climbed to $66.06 as of 9:00am Wednesday morning.

It has been made clear, by the U.S., it is expecting Iranian crude exports to get to zero. Knowing these sanctions were lurking for the end of the year, China, South Korea, and Japan have cut their purchases drastically from earlier in the year, ship-tracking data has shown.

Oil has also been affected by the global financials economic market pullback during October, as trade war between US and China continues. The United States has already imposed tariffs on $250 billion worth of Chinese goods and China has responded with retaliatory duties on $110 billion worth of U.S. goods. Keep an eye on the meeting between Trump and Xi. If the meeting does not go as planned, expect the US to apply more tariffs to China come early December.

Global Oil Supply Is continuing to rise with top 3 producers (Russia, Saudi Arabia, US) producing more than 33 million barrels per day in September, which came out to an increase of 10 million barrels per day since the beginning of the year.

 

https://www.cnbc.com/2018/10/31/oil-markets-us-china-trade-war-crude-inventories-in-focus.html


Categories: Tarriffs, sanctions, China


Sam Klein

Written by

Sam Klein

I enjoy helping my clients to understand the value Guttman Energy provides. My background in consultative sales allows me to understand my customers issues and finding comprehensive and effective ways to solve those issues.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us