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Trump administration is blinking on Iranian oil sanctions




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In this June 29, 2018 picture, President Donald Trump moves during an event in the Eastern Room of the White House in Washington. Trump says he has received assurances from King Salman in Saudi Arabia that the kingdom will increase oil production, "maybe up to 2,000,000 barrels," in response to turmoil in Iran and Venezuela. Trump said on Twitter, Saturday, June 30 that he asked Salman to increase oil production "to make the difference … Prices to high! He has agreed! "Saudi Arabia recognized the conversation but did not mention any production goals." (AP Photo / Jacquelyn Martin, File) [1

9659002] If there is one thing a politician hates to see, it's the oil prices that rise before a choice. set past administrations & nbsp; attempts to manipulate oil prices & nbsp; leading to elections. For example, former presidents have released oil from Strategic Petroleum Reserve & nbsp; in an attempt to moderate oil prices before elections.

This is a Situation President Trump has met over the past year. In the summer of 2017 price of a West Texas Intermediate (WTI) crucible was still in the mid 40's. This summer reached the mid 70's, a one-year growth of more than 50%.

A factor behind this recovery has been the harsh line taken by the Trump administration on Iran. As recently as April this year, Iran exported more than 2.6 million barrels of crude oil per day ran is one of the world's top 10 crude oil exports, representing almost 5% of worldwide crude oil exports in 2017.

The trumpet administration has targeted Iran's oil industry with sanctions, warning land against the continued purchase of Iranian crude oil. However, this strategy is bound to lead to an increase in oil prices, unless the oil market has plenty of available production capacity.

Saudi Arabia has applied for to reassure the world's oil markets that it could make up for Iran's oil exports, but many analysts are skeptical that they can easily do it. This is especially true in view of the ongoing implosion of Venezuela's oil industry, and the resulting decline in its oil exports.

Therefore, the trumpet administration is in the difficult position that wants to tighten the screws on Iran while avoiding an oil price girl. So, when the November 5th day loomed for land to eliminate oil imports from Iran, the Trump administration blinks.

Last week, the Trump Administration announced that it would grant dispensations to eight countries to allow them to keep importing Iranian crude oil for now. The deviations allow these countries an additional 180 days to liquidate their purchases of Iranian crude oil. In my opinion, this was a move to avoid an oil price surplus just before this week's election.

It is worth noting that although oil prices are about 10% higher than they should start the year, WTI has fallen by about 10% over the past month. This is mainly due to crude oil inventories in the United States that has increased for six consecutive weeks.

This increase in commodity stocks can be explained in part by the ongoing trade war with China. After the export ban on crude oil was exported, the cessation was reached in 2015, China's crude oil exports from the US increased. Throughout July this year, China imported more than half a million bar of oil from the US

But China recently announced in the light of trade war with the United States, it has suspended crude oil imports from the United States. Probably, China has not reduced its oil consumption by half a million barrels a day, so it has had to be trusted that other countries – including Iran – fill that gap. But the loss of this export market has helped to increase crude oil inventories higher, and US crude oil prices are reduced in response.

So, at least one Trump Administration Policy helps to reduce oil prices, even if it is only a consequence of a trade spit.

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In this June 29, 2018 picture, President Donald Trump dreams while speaking during an event in the Eastern Room of the White House in Washington. Trump says he has received insurance from King Salman in Saudi- Arabia that the kingdom will increase oil production, "maybe up to 2,000,000 barrels," in response to turmoil in Iran and Venezuela. Trump told Twitter on June 30 that he asked Salman to increase oil production "to make up the difference … Prices to high! He has agreed! "Saudi Arabia acknowledged that the conversation took place but did not mention any production goals." (AP Photo / Jacquelyn Martin, File)

If there is one thing that a politician hates to see, there are oil prices that rise in front of a choice. That is why we have seen previous administrations try to manipulate oil prices leading to elections. For example, former presidents have released oil from Strategic Petroleum Reserves in an attempt to moderate oil prices before elections.

This is a situation President Trump has met In the summer of 2017, the price of a tin of West Texas Intermediate (WTI) crude oil was still in the mid-40s. This summer reached it in the mid 70's, an annual increase of more than 50%.

One factor behind this increase has been the harsh line taken by the Trump Administration on Iran. As recently as April this year, Iran exported more than 2.6 million barrels of crude oil per day. Iran is one of the world's top 1 0 crude oil exports account for almost 5% of world-wide crude oil exports in 2017.

The trumpet administration targets the Iranian oil industry with sanctions, warning land against the continued purchase of Iranian crude oil. However, this strategy is bound to lead to an increase in oil prices, unless the oil market has plenty of available production capacity.

Saudi Arabia has tried to reassure the world's oil markets that it can make up for the loss of Iran's oil exports, but many analysts are skeptical that they can easily do it. This is especially true in view of the ongoing implosion of Venezuela's oil industry, and the decline in oil production in the country.

Therefore, the trumpet administration is in the difficult position that will tighten the screws on Iran while avoiding an oil price girl. So, when the November 5th day loomed for land to eliminate oil imports from Iran, the Trump administration blinks.

Last week, the Trump Administration announced that it would grant exemptions to eight countries to allow them to continue importing Iranian crude oil for now. The deviations allow these countries an additional 180 days to liquidate their purchases of Iranian crude oil. In my opinion, this was a move to avoid oil price growth just before this week's election.

It is worth noting that although oil prices are about 10% higher than they should start the year, WTI has fallen by about 10% over the past month. This is mainly due to crude oil inventories in the United States that have risen for six consecutive weeks.

This increase in commodity stocks can be explained in part by the ongoing trade war with China. Following the lifting of the export ban on crude oil in 2015, China's exports of crude oil from the US increased. Throughout July this year, China imported more than half a million barrels of crude oil from the United States

But China recently announced that, in light of trade war with the United States, it had suspended crude oil imports from the US. Probably China has not reduced its oil consumption by half a million barrels per day, so it has had to be trusted that other countries – including Iran – should fill that void. But the loss of this export market has helped to increase crude oil inventories higher, and US crude oil prices are reduced in response.

So, at least one Trump Administration Policy helps to reduce oil prices, even if it is only a consequence of a trade spit.


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