11-09-2018 05:30 PM
Oil prices trade high on Monday morning as U.S. energy firms cut production from some rigs last week and the supply is likely to tighten as Washington’s sanctions against Iran will fall into effect in November.
According to Sunil Kumar, Market Expert & Director at Enrich Commodities – Markets are anticipating significant price pressure as Iran sanction emerges.
Washington is placing pressure on other countries to also cut Iran imports, with close supporters like South Korea and Japan, but also India.
U.S. Energy Secretary Rick Perry met with Saudi Energy Minister Khalid al-Falih on Monday in Washington, as the Trump managementsupports big oil-producing countries to keep production high further onthe renewed sanctions.
U.S. Energy Secretary Rick Perry met with Saudi Energy Minister Khalid al-Falih on Monday in Washington, as the Trump administration encourages big oil-producing countries to keep output high ahead of the renewed sanctions. Perry will meet with Russian Energy Minister Alexander Novak on Thursday in Moscow.
Russia, the United States and Saudi Arabia are the world's three major oil producers. They meet around a third of the world's almost 100 million barrels per day (bpd) of daily crude consumption.
Combined output by these three producers has climbed by 3.8 million bpd from the time since September 2014, more than the peak 3 million bpd Iran has managed during the last three years.
As Middle East crude markets have tightened because of the U.S. sanctions against Iran, many Asian refiners are seeking alternative supplies, with South Korean and Japanese imports of U.S. crude touching a record in September.
Simultaneously, American oil producers are in quest of new buyers for crude they used to sell to China before orders almost dried up because of the trade disputes between Washington and Beijing.