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Crude prices fall further with Iran n-deal

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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)

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Britain Firmly Committed to Ensuring Iran Nuclear Deal

The two leaders also condemned the Iranian rocket attacks against Israeli forces earlier this week and agreed on the need for calm on all sides

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Theresa May
Theresa May (Wikimedia Commons)

British Prime Minister Theresa May has told US President Donald Trump that her government remains firmly committed along with her European partners to maintain the Iran nuclear deal, media reported on Saturday.

During a phone call on Friday, May said she was “firmly committed to ensuring the deal was upheld, as its the best way of preventing Iran from developing a nuclear weapon”, Xinhua News agency reported quoting Downing Street spokesperson.

May raised the potential impact of US sanctions on those firms which were currently conducting business in Iran.

The two leaders also condemned the Iranian rocket attacks against Israeli forces earlier this week and agreed on the need for calm on all sides.

Also Read: NASA Tests Mini-Nuclear Reactors for Moon and Mars

The spokesperson said May and Trump also discussed the relations between the US and North Korea, as May began the call by congratulating Trump on the safe return of three US citizens who had been held in North Korea.

“The two leaders looked forward to the summit which will take place between President Trump and Kim Jong-un in Singapore,” the spokesperson said, adding that Britain would continue to work with the US to keep up the pressure for denuclearisation of North Korea.

According to the spokesperson, May and Trump were looking forward to Trump’s visit to Britain in July. (IANS)

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