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Oil prices take a plunge amid ample crude supplies

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New York: Oil prices plunged as the market expected crude production from the Organisation of Petroleum Exporting Countries (OPEC) to hit a high in July.

In June, OPEC production increased by 283,000 barrels per day to 31.38 million barrels per day, a three-year high, according to OPEC monthly oil market report on Monday.

Traders also anticipated more Iran crude would come to the already well-supplied oil market as the sanctions are lifted, reported a Chinese media outlet.

US oil companies added more oil rigs this week despite the collapse in crude prices, marking the second straight week of an up-tick in the rig count.

Data showed a weekly rise of five in the number of active US oil drilling rigs to 664, according to oil services company Baker Hughes’ Friday report.

The west Texas intermediate for September delivery moved down $1.95 to settle at $45.17 a barrel on the New York Mercantile Exchange.

Brent crude for September delivery decreased $2.69 to close at $49.52 a barrel on the London ICE Future Exchange.

(IANS)

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U.S. To End Waivers For Iran Oil imports

Oil exports are a key source of revenue for Tehran, which has been hit hard by the reimposition of U.S. sanctions.

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U.S. Secretary of State Mike Pompeo (file photo)
U.S. Secretary of State Mike Pompeo. RFERL

U.S. President Donald Trump has decided not to reissue waivers in May allowing importers to buy Iranian oil without facing U.S. sanctions, the White House said in a statement on April 21.

The United States, Saudi Arabia and the United Arab Emirates “have agreed to take timely action to assure that global demand is met as all Iranian oil is removed from the market,” the White House said.

“This decision is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue,” the statement added.

The decision means sanctions waivers for five nations, including China and India, Japan, South Korea and Turkey, won’t be renewed when they expire on May 2.

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The move is part of the Trump administration’s tough line on Iran. VOA

U.S. Secretary of State Mike Pompeo said Washington has had “extensive and productive discussions with Saudi Arabia, the United Arab Emirates, and other major producers to ease this transition and ensure sufficient supply.”

U.S. Senator Ted Cruz (Republican-Texas) applauded the end of oil waivers for Iran.

“This decision will deprive the ayatollahs of billions of dollars that they would have spent undermining the security of the United States and our allies, building up Iran’s nuclear and ballistic-missile programs and financing global terrorism,” he said.

The move is part of the Trump administration’s tough line on Iran.

“We will continue to apply maximum pressure on the Iranian regime until its leaders change their destructive behavior, respect the rights of the Iranian people, and return to the negotiating table,” Pompeo said in an April 22 statement.

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“This decision is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue,” the statement added. Pixabay

Oil exports are a key source of revenue for Tehran, which has been hit hard by the reimposition of U.S. sanctions.

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Ahead of Washington’s announcement, an unamed Iranian Oil Ministry source told the semiofficial Tasnim news agency that the United States will fail to cut Iranian oil exports to zero.

“Whether the waivers continue or not, Iran’s oil exports will not be zero under any circumstances unless Iranian authorities decide to stop oil exports…and this is not relevant now,” Tasnim quoted the unnamed “informed source” as saying. (RFERL)