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Showing posts from June 6, 2021

Oil prices rise again following the false dawn: 500 sanctions against Iran, yet to be lifted!

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  The crude oil price fell for a brief period yesterday at the news that some sanctions against former Iranian officials had been lifted by the US. Once the fog surrounding the development started clearing, the momentum of upward trend continued, though; the US simply played it down by saying the move was just routine. The reaction to the news by the crude oil markets simply shows the significance of the Iranian factor in determining the current oil price. Despite the assurance by the OPEC+ that the arrival of Iranian oil into the international markets will be orderly and transparent, the misplaced anxieties in the markets show no sign of abating. If the reaction in the oil markets in response to a minor development such as sanctions against a few individuals being lifted was like what we saw yesterday, we can just imagine the would-be reaction in the event of all sanctions being lifted; it’s no exaggeration; the market reaction, in all probability, will go seismic. The signato

Rising oil price is becoming a hot political issue - globally

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  Oil prices at the pumps are on the rise, both in the developed world and those in the developing world. It’s almost universal in proportion to the recent rise in crude oil prices. The immediate impact on the economies in the developed world, however, is more significant and there are signs that it’s becoming a hot political issue. In India, for instance, the rise in oil price is felt across many segments of the Indian society and the government is under fire for not dealing with it. The Indian government, meanwhile, without denying that it is the case, blame it on the global crude oil prices. The opposition, however, blames the rise in oil price on government taxes. As the Covid-19 infections are on decline to a manageable level, the focus of the government of India has been on reviving the battered economy. India is the third largest crude oil importer of the world and the Indian government wants its suppliers in the Middle East take that on board, when it comes to the p

Vienna talks on 2015 Iran nuclear deal have hit a snag: crude oil markets to turn bullish again

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  The talks on reviving the JCPOA, 2015 Iranian nuclear deal, appear to have run into insurmountable challenges, despite the optimism that has been growing during the past few weeks. Anthony Blinken, the Secretary of the State of the US, poured cold water on the possibility of a breakthrough on Monday: “It’s unclear whether Iran is willing and prepared to do what it needs to do to come back into compliance,” said he while speaking to lawmakers on the US foreign policy. Mr Blinken even implied that possibility of an agreement being reached with Iran may be months away – at best! Iran, however, did not agree with the top US diplomat; Iran says it is complying with the terms of the JCPOA. The latest US position was made clear after the IAEA, the International Atomic Energy Agency, vent its frustration at Iran for not providing it with vital information: “Iran has provided no new information in relation to one location, has not answered any of the Agency’s questions nor provided an

Oil price falls on Monday on account of negative sentiment in the markets

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  The price of crude oil suddenly fell on Monday, ending the two-week surge for inexplicable reasons, despite the multitude of positive factors lurking on the horizon. The growth of all major economies is improving with the sentiment almost at the pre-pandemic level: China, for instance, recorded 25.6% increase in its export during the first quarter; in Europe and the US, vehicular traffic is back on roads; airline industry are active again; the vaccination rollout is going ahead full steam and there is a significant reduction in deaths and hospital admissions. In India, meanwhile, the normalcy slowly returns with the rate of infections – and deaths – coming down in a moderate way; India is still the world’s third largest importer of crude oil. Yet, the oil price once again fell defying the expectations. Brent crude broke through the barrier, $ 70 a battel, earlier on Monday, only to fall back below it. Only in 2018, did oil price reach this level. Of course, the investors are

Crude Oil Price: OPEC+ members are anxious about the arrival of Iranian oil - top Russian oil executive

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  Although the crude oil price rose this week, the anxiety over flooding the markets with Iranian oil still has the potential to rattle the sector in the next few days. The signatories to the JCPOA, Joint Comprehensive Plan of Action, also known as 2015 Iran nuclear deal, are going to meet up again in Vienna, the Austrian capital, next week, after a 10-day break for consultations with their respective governments. They already have had five rounds of talks with the anticipated breakthrough not being in the offing; they, however, have ironed out many thorny issues and the optimism at the negotiation table had never been higher. Iranians, meanwhile, feel that some regional powers do not want a deal being struck; Iranian media identifies the ‘saboteurs’ as ‘West Asian regimes’. The success of reaching an agreement in the talks in the next round, however, is strong: the Iranian rhetoric that we witnessed at the beginning of the talks is on the wane; they have opened up he diplomati

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