09-10-2018 03:20 PM
Oil prices climbed on Tuesday as more facts appeared that crude exports from Iran, OPEC's third-largest producer, are waning in the run-up to the re-imposition of U.S. sanctions and as a cyclone stirred across the Gulf of Mexico.
U.S. West Texas Intermediate (WTI) crude futures fell by 24 cents, or 0.3 percent, at $74.53 a barrel. WTI fell to as low as $73.07 in the previous session but closed just 5 cents lower.
According to tanker data and an industry source - Iran's crude exports fell more in the first week of October, , as buyers are in quest ofsubstitute ahead of the start of the U.S. sanctions on Nov. 4.
Refinitiv Eikon data revealed - The Islamic Republic exported 1.1 million barrels per day (bpd) of crude in that seven-day period. An industry source who also tracks exports said October shipments were so far below 1 million bpd, which is down from at least 2.5 million bpd in April, previous to President Donald Trump in May took out the United States from a 2015 nuclear deal with Iran and re-imposed sanctions. The figure also marks a further fall from 1.6 million bpd in September.
Last week, Saudi Arabia, the biggest producer among the Organization of the Petroleum Exporting Countries (OPEC), pronounced plans to lift crude output next month to 10.7 million bpd, a record.
Iran's Oil Minister Bijan Zanganeh on Monday called a Saudi claim that the kingdom could replace Iran's crude exports "nonsense."
According to his ministry's website, Zanganeh said "Iran's oil cannot be replaced by Saudi Arabia nor any other country."