Oil prices drop as storm threat eases on US Gulf coast

Relief for India! US to help replace Iran oil may consider waivers

Investors anticipate less supply from Iran as US sanctions on Tehran begin to bite.

But these factors alone are not enough to create a sustainable oil rally, especially with the escalating trade war between China and the USA threatening demand and the dollar set to strengthen in September.

The attempt to keep Iranian oil flowing mirrors a step by China, where buyers are shifting almost all their Iranian oil imports to vessels owned by National Iranian Tanker Co (NITC), reported news agency Reuters quoting sources.

Meanwhile, trade disputes between the U. The company, he said, is still carefully monitoring the progress of the bilateral talks between Japan and the US. "It helps that Iranian production is coming down even quicker than anticipated in front of sanctions".

Azlin Ahmad, editor-crude oil at Argus Media, told CNBC that "Refiners have already started to cut imports of Iranian crude.the volumes are starting to fall, and added to that is the Venezuelan low production, so prices have gone up, [and] I think there is still potential for prices to go a bit higher because we haven't really seen the full impact of the sanctions on Iran".

Amid mounting discontentment toward President Hassan Rohani's government over a deterioration in the country's economic situation, Iranian lawmakers last week sacked the minister of economic affairs and finance, the latest in a continuing shake-up of top economic personnel in the country.

Seko's comments came as Japanese refiners urge the government to seek a USA waiver on Iran sanctions as they are keen to continue importing their usual volumes instead of reducing inflows.

Also weighing on crude futures was a currency crisis in Turkey.

Iran's oil exports are plummeting, as refiners scramble to find alternatives ahead of a re imposition of US sanctions in early November. With the United States not yet saying whether it's granting any nation an exemption, all shipments from Iran to its leading customers may be in peril starting this month.

The 9.6% rise lifted Japan's import volumes of Iranian cargoes to 183,560 b/d in July despite the country's overall crude imports dropping 12.8% year on year to 2.92 million b/d in the month, preliminary data from the Ministry of Economy, Trade and Industry released Friday showed.

Despite these fears, the global markets don't have much to worry about as they are still fairly well supplied.

International Brent crude futures LCOc1 , by contrast, lost ground, trading at $78.10 per barrel, down 5 cents from their last close. Front-month prices have soared nearly 50 per cent over the past year, and were at $79.17 a barrel at 11:01 am in London on Tuesday.

"To the extent we're seeing the Iran barrels lost to the market, you're looking at a WTI price and Brent in the $85 to $95 range, potentially", Kilduff said.



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