Oil prices extend gains after United States sanctions against Iran

After plummeting more than 3 percent on Wednesday, oil prices steadied early on Thursday, but still traded close to their seven-week low as the U.S.

Brent crude futures fell $2.73 to $71.92 a barrel, a 3.7 percent loss, by 12:33 p.m. EDT (1633 GMT).

"The re-imposition of US sanctions on Iran remains the key (price) driver in the near-term".

Watch oil trade in real time here.

Iran's oil exports have now fallen for three successive months as the country braces itself for the re-imposition of sanctions by the US.

China is rather looking to compensate for the decline in demand that Iran sees in its oil as other nations might halt imports amid USA threats.

Dmitry Peskov, a spokesman for Russian President Vladimir Putin, said the U.S. decision was counter-productive given the show of friendship between Putin and U.S. President Donald Trump in Helsinki last month.

Oil has declined about 7 percent from the highs of June as trade tensions between the United States and China imperil economic growth and energy demand.

More news: Is Meghan Markle allowed to be a bridesmaid for Priyanka Chopra?

Analysts expect Iranian exports to drop by anything between 500,000 and 1 million b/d after full USA sanctions are re-imposed on November 5.

Investor concern that the trade spat will limit energy demand growth overshadowed Energy Information Administration data released Wednesday that showed United States crude inventories fell the second time in three weeks.

While the demand outlook was getting gloomier, supplies are likely to tighten with the introduction of US sanctions against Iran, which from November will also include oil exports.

Saudi Oil Minster Khalid al-Falih said his government's policy is to meet market considerations first.

"The market is supported by concerns the sanctions on Iran are going to reduce Iranian supply", said Tony Nunan, oil risk manager at Mitsubishi in Tokyo.

But US bank JPMorgan said a warmer-than-usual fourth quarter could stem from a potential El Nino weather pattern that "can cause droughts, flooding and other natural disasters across the globe, including heatwaves in the US that affect commodities". Nationwide inventories in the U.S. probably fell 3 million barrels last week, according to a Bloomberg survey of analysts before government data due on Wednesday. Gasoline inventories added 2.9 million barrels last week, the EIA said, against expectations for a drop of 1.7 million barrels in a Reuters poll. Its previous estimate was at 10.79 million barrels per day.

Some sources have said with exports falling, Iran's domestic refinery runs have increased, with a pick-up in gasoline output observed at some of its refineries, and more barrels are expected to go onto floating storage.

Oil prices dipped on Wednesday after China reported relatively weak import data, although the market remained well supported by falling USA crude inventories and the introduction of sanctions against Iran.

Related News:

06 August 2018

Charlotte Rae, 'Facts of Life' Star, Dead at 92
Rae revealed past year that she had bone and pancreatic cancer, but a cause of death was not immediately revealed. The actress was nominated for two Tony awards and received an an Emmy nomination in 1975 and again in 1982.

05 August 2018

Vintage plane's crash in Switzerland kills all 20 people on board
It was flying a group of 14 Swiss nationals and a three-member family from Austria on a sightseeing tour for the company JU-AIR. The cause of crash is now being investigated by the Federal Prosecutor's Office, in partnership with local Swiss authorities.

04 August 2018

USA to apply more pressure on China with new tariff hike
China's Ministry of Foreign Affairs said it will fight back should the USA further increase tariffs. Mr Trump's threats of higher tariffs weighed on China's financial markets.
06 August 2018

In 12 hours Crystal Palace boss Hodgson confident Zaha wants stay
Tottenham have also been linked with Zaha, but are now trying to sign Aston Villa's Jack Grealish. After a fantastic 2017/18 season for Crystal Palace , Wilfried Zaha is a man in demand.

06 August 2018

Oil supported as new hedges placed, but rising global…
"A lot of this is the risk premium priced in for Iran and when do we start seeing an impact on supply there", Patterson said. USA crude oil production for the month of May stood at 10.442 million bpd, compared to 10.472 million bpd in April.

06 August 2018

Thomas Doesn't Break Sweat in Earning Win
Paul and Phyllis Thomas live in the Louisville, Ky., and this is the first time they saw Justin win in person on the PGA Tour. McIlroy carded a three-under 67 to share second on 199 with overnight co-leader Ian Poulter of England, who carded a 70.
Gates admits he cheated on wife at Manafort trial
Downing pressed him on the specifics of their business relationship: which payments to Gates were authorised and which were not. On Tuesday , Gates did connect one part of the bank fraud charges against Manafort to his role in the Trump campaign.

Trump's China Trade War Just Escalated by $16 Billion
The Office United States Trade Representative ( USTR ) announced the tariffs in a statement released on Tuesday afternoon US time. After months of escalation, business communities in both countries are wondering when and how the trade confrontation will end.

03 August 2018

Mueller, Trump Lawyers Closing In On Interview Agreement
He added that the team may be receptive to questions of obstruction "if they could show us one or two there, we can consider it". Goldstone added in the email that the information was "part of Russian Federation and its government's support for Mr.
08 August 2018

China lashes out at Trump’s trade policy
The result is that both China and the USA are now using government funds to stimulate areas of the economy . The US widened the tax net to cover Mexico, Canada , the European Union and India.

07 August 2018

Mendocino Complex: Another day of successes, setbacks
The SAFD hopes its crew will help in the fight, adding to the more than 4,700 fire personnel who are now battling the Carr Fire . The Ranch Fire was 225,001 acres with 21 percent containment and the River Fire was 48,663 acres with 58 percent containment.

06 August 2018

Alderweireld to tell Spur's: It's Man United or nothing
Alderweirald had a curtailed season a year ago with the Spurs due to injury, but was very impressive in the World Cup which led to the rumours of his departure.