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Showing posts from May 30, 2021

Saudi Arabia raises oil price for Asia, citing demand outstriping supply

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  Saudi Aramco, the state owned oil giant, reversed its decision to lower the price of crude oil for Asia and increased the price instead for July by 20cents. Last month, Saudi Arabia reduced the price of crude oil for the same region where 60% of its core customers are in as a gesture of goodwill: the region in question is still battling with a catastrophic surge in Covid-19 infections, with India, the third largest consumer of the commodity in the world, being the worst hit; the pandemic situation in Japan, Malaysia and a few in the region is far from over. In a surprise move, Aramco has not raised the price of crude oil for the US, the world’s largest producer of the fuel. Saudi Arabia’s decision is attributed the surging demand of crude oil, especially in the US and Europe; the OPEC+ believes that the demand will outstrip the supply and hence producers want to cash in on it. There may be another factor, though. Iran and the West are going into the sixth phase of discussion on the 2

Oil price rises with talks over 2015 Iranian nuclear deal progresses at snail's pace

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Saudi Energy Minister pokes fun at speculators: "Don't predict the unpredictable!"

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  The monthly OPEC+ meeting ended on Tuesday without a major shift in production policy of the organisation; the members agreed to go ahead with the planned increase in the output for June and July. The price of crude oil, Brent, meanwhile, hit above the psychologically significant mark, $70, on Tuesday despite the outcome of the OPEC+ ministerial meeting not being clear. There were plenty of speculations about the possible last-minute policy changes on social media, though; nothing materialised in the end. Although the members stated that they did not take up the issue of the revival of 2015 Iranian nuclear deal and its potential impact on the supply / price pair, no adjustment was made with regard to the crude oil output beyond July. The members of the OPEC+, however, appear to be cautious about Iran’s entry into the markets; Prince Abdulaziz bin Salman, the Saudi Energy Minister, meanwhile, said on Wednesday, that oil producers must remain ‘extremely cautious’, citing the un

Oirl price rises: Iran's entry into markets vs OPEC+ outcome

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  Crude oil price has been on a rising trend today since the markets opened for trading, with analysts being all eyes and ears at the virtual conference of the OPEC+. With the feasibility of Iran’s legitimate entry into the oil markets weighing heavily on the supply side of the equation, the anticipated outcome of the meeting may shed some light on the progress of the talks in Vienna on 2015 Iranian nuclear deal too. If Iran haggles over its right to increase production, against the wishes of the most of the members of the OPEC+, it is an indication of possible breakthrough in the next few days during the talks on the JCPOA, also known as 2015 nuclear deal in Vienna. According to Iranian negation team in Vienna, both sides   of the signatories to the JCPOA have faced stumbling blocks in pursuing   a deal; in today’s OPEC+ meeting, Iran may find that what it faces in Vienna is not the only stumbling block when it comes to reviving its crude oil trade – to the level it desired. T

Oil Price: the latent influence of talks over 2015 Iran nuclear deal

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  The volatility of oil price continues despite the encouraging market factors, which usually are strong enough to keep it at a steady level in normal circumstances. The reality on the ground, however, is puzzling even the veterans in the sectors. Of course, these are not normal times; the pandemic has changed political landscape beyond recognition. Against this background, it is tempting to speculate the Iranian factor in the game: during the last two weeks, the sentiment of optimism reached fever pitch, when President Hassan Rouhani of Iran provided the crude oil markets with much-needed impetus – an imminent breakthrough that could result in the lifting of the US-led sanctions against Iran. In inverse proportion to the sentiment, the oil markets reacted; the price of crude oil went down, fearing an oil glut with the supply of Iranian oil flooding the markets. As the progress of the talks in its latest round, the 5 th , in Vienna moved on at a slower pace, the oil price start

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