Tuesday August 21, 2018
Home Business Crude prices ...

Crude prices fall further with Iran n-deal

0
//
22
Republish
Reprint

New Delhi, As Iran and the six world powers reached a nuclear agreement by their deadline, crude oil prices fell further on Tuesday, pulled down by prospects of easing of sanctions imposed on the Persian Gulf nation.2695927_25f451ea

London Brent crude dropped to $56.96 a barrel of nearly 160 liters, while US crude was trading down at $51.12. The Indian basket crude oil traded on Monday, the deadline for the nuclear deal, at $57.19 per barrel.

The Indian basket had fallen last Tuesday to $56 a barrel, as China’s stock market-plunged and the Greek crisis revived the specter of weaker economic growth that could impact oil demand.

China’s economic growth in the second quarter is forecast to be the weakest since the 2008-2009 global financial crisis.

The International Energy Agency said last week that Iran has at least 17 million barrels of crude oil stored and ready to be shipped.

“Iran would seek to increase its oil exports to the global market if a nuclear deal is reached and the western sanctions are lifted,” Iranian Oil Minister Bijan Zangeneh said recently.

He said Iran can restore its production of one million barrels per day fairly quickly, which supply can hit the market in less than six months.

This would add to output from the Organization of Petroleum Exporting Countries (OPEC) whose production levels are already at a three-year high, at a time when the market remains quite over supplied.

OPEC released its monthly oil market report on Monday, with Saudi Arabia reporting a record crude oil production of 10.6 million barrels per day (bpd) in June, an increase of more than 200,000 bpd on the previous month.

Stable crude oil prices in the international markets would help India manage its macro-economy well, chief economic adviser Arvind Subramanian has said.

“I do not see oil prices going beyond $80-85 a barrel (about 160 liters), given the fundamental changes in the market. If oil prices remain steady even at that ($80-85) level, I think we can manage the economy well,” Subramanian said at a lecture late last month at the Bangalore International Center.

“Besides decline in our oil import bill, we have seen fundamental shifts in the international market, which has helped crude oil prices remain steady,” he said.

(IANS)

Click here for reuse options!
Copyright 2015 NewsGram

Next Story

Iran looking Forward To Continue Nuclear Enrichment Activity

President Donald Trump withdrew United States from the 2015 nuclear accord

0
A bicyclist passes the nuclear power plant just outside Bushehr, Iran, Oct. 26, 2010.
A bicyclist passes the nuclear power plant just outside Bushehr, Iran, Oct. 26, 2010, VOA

Iran has informed the International Atomic Energy Agency it will resume testing of a new generation of nuclear centrifuges Wednesday.

Ali Akbar Salehi, the head of Iran’s nuclear energy agency, said Tehran would remain within the framework of the Joint Comprehensive Plan of Action, or JCPOA, nuclear deal reached with the five permanent members of the United Nations plus Germany. Salehi added that the accord allowed Iran to test a new generation of nuclear centrifuges and that his country’s nuclear program is intended for peaceful civilian purposes.

Salehi says Supreme Leader Ayatollah Ali Khamenei issued a religious edict years ago that banned nuclear weapons.

Khamenei told a group of visitors Monday that he had issued orders for the country’s Atomic Energy Organization to increase its enrichment capacity to 190,000 centrifuges, provisionally, in accordance with the JCPOA.

President Donald Trump withdrew the United States from the 2015 nuclear accord last month. Britain, France and Germany have been attempting to salvage the deal that Trump has described as “horrible” and “one-sided.”

 

Iran's head of the country's Atomic Energy Organization, Ali Akbar Salehi, attends a seminar in Tokyo, Japan, Nov. 5, 2015. logo LIVE MIDDLE EAST Iran Prepares to Resume Nuclear Enrichment Activity June 06, 2018 1:16 PM Edward Yeranian FILE: A bicyclist passes the nuclear power plant just outside Bushehr, Iran, Oct. 26, 2010. FILE: A bicyclist passes the nuclear power plant just outside Bushehr, Iran, Oct. 26, 2010. Share See comments CAIRO — Iran has informed the International Atomic Energy Agency it will resume testing of a new generation of nuclear centrifuges Wednesday. Ali Akbar Salehi, the head of Iran's nuclear energy agency, said Tehran would remain within the framework of the Joint Comprehensive Plan of Action, or JCPOA, nuclear deal reached with the five permanent members of the United Nations plus Germany. Salehi added that the accord allowed Iran to test a new generation of nuclear centrifuges and that his country's nuclear program is intended for peaceful civilian purposes. Salehi says Supreme Leader Ayatollah Ali Khamenei issued a religious edict years ago that banned nuclear weapons. FILE - Iran's head of the country's Atomic Energy Organization, Ali Akbar Salehi, attends a seminar in Tokyo, Japan, Nov. 5, 2015. FILE - Iran's head of the country's Atomic Energy Organization, Ali Akbar Salehi, attends a seminar in Tokyo, Japan, Nov. 5, 2015. Khamenei told a group of visitors Monday that he had issued orders for the country's Atomic Energy Organization to increase its enrichment capacity to 190,000 centrifuges, provisionally, in accordance with the JCPOA. President Donald Trump withdrew the United States from the 2015 nuclear accord last month. Britain, France and Germany have been attempting to salvage the deal that Trump has described as "horrible" and "one-sided." Former Iranian President Abolha
Iran’s head of the country’s Atomic Energy Organization, Ali Akbar Salehi, attends a seminar in Tokyo, Japan, Nov. 5, 2015. VOA

 

Former Iranian President Abolhassan Bani Sadr told VOA he thinks Khamenei’s decision to resume nuclear enrichment capacity is “not a well-thought out move,” and that it is having negative consequences on regional interests.

According to Bani Sadr, the decision strengthens Israeli Prime Minister Benjamin Netanyahu’s charge that Iran represents a threat to Israel and must evacuate its forces from Syria, as requested by the U.S.-Israeli-Saudi axis.

In addition, said Bani Sadr, Khamenei’s statement that Israel will be “eradicated from the face of the Earth” negatively influences public opinion against Tehran.

Khattar Abou Diab, a political science professor at the University of Paris, tells VOA that Khamenei’s decision was aimed at pressuring Europe into gaining concessions from the United States. While France’s foreign minister spoke of “red lines” that Iran must not cross, Paris, Berlin and London have asked to be exempted from new economic sanctions Trump imposed on Iran.

Also read: Israel warn Iran hints war Middle East

  • Abou Diab argues that despite Iran’s bluster, it “fears any eventual reaction or backlash from Washington.” (VOA)

Next Story