Oil: Iranian sanctions – ing

ICE Brent rose almost 2.6% yesterday, reaching its highest level since the end of April. A weakest USD after a American consumer (CPI) colder pricing (IPC) colder than expected provided some winds favorable to the oil market. However, The key catalyst is the threat of new Iranian oil exports sanctionsSegñyb points out the raw material experts INGEwa Manthey and Warren Patterson.

OPEC+ will probably continue with aggressive supply increases

“Yesterday, the US Treasury sanctioned a network that facilitates Iranian crude oil shipments to China. In addition, President Trump said they are possible more hard sanctions if a nuclear agreement with Iran is not reached. Trump has repeatedly threatened to carry exports of Iranian oil to zero. Although this is unlikely, there is certainly margin for a considerable reduction, since they will current Around 1.6 million barrels per day.

“The lowest Iranian oil flows should be well received by other members of the OPEC+, since they provide space to increase production. For now, all signals suggest that the OPEC+ will probably continue with aggressive supply increases. We will have to wait until June 1 to see what the group decides on its production policy for July. The increases in supply already announced by the OPEP+ should be well received by the OPEP+ Trump, given his desire to see lower oil prices.

“During the night, the numbers of the American Petroleum Institute show that US crude oil inventories increased by 4.29 million barrels during the last week, very different from the reduction of approximately 2 million barrels that the market expected. Meanwhile, crude oil inventories fell into 850,000 barrels, while gasoline and distilled inventories fell into 1.37 million Barriles and 3.68 million barrels, respectively.

Source: Fx Street

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