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India reducing oil from Iran ahead of US sanctions: report | TheHill

Iran OPEC chief: 'Saudi and Russia are taking oil market hostage'

Cutbacks from Iran's production following the imposition of US sanctions did not provide an immediate enough catalyst for to support prices, he said. Crossing the $70 bar set USA oil prices at a fourth-month high.

Brent crude was up 23 cents, or 0.3 per cent, at $78.41 a barrel by 0122 GMT, after falling 2 per cent on Thursday.

Back in August, Kazempour Ardebili said the USA president has apparently been duped by Saudi Arabia into believing that the kingdom can replace Iranian barrels cut from the market.

The EIA states: "The oil price decline in mid-2014 resulted in USA producers reducing their costs and temporarily scaling back crude oil production".

A long-time adviser at Saudi Arabia's Energy Ministry also said last month that current USA sanctions on Iran were unlikely to stop Iranian oil exports completely.

The pipe, which also sends crude oil to the north-east of the USA, could be subject to flooding or power outages if the hurricane hits pumping station.

Iran and India traded 4.71 million tons of non-oil commodities worth 2.18 billion USA dollars during the first five months of the current Iranian fiscal year from March 21 to August 22, Eghtesad online news website reported on Saturday.

Still, the IEA remained cautious in its report, stating that "We are entering a very crucial period for the oil market".

In July, Iran's oil minister reported that Saudi Arabia had pumped 10.489 million barrels per day in June, up 459,000 from May and above its target of just over 10 million bpd.

Iran's OPEC representative said that Saudi Arabia and Russian Federation have taken the world's oil market "hostage" as US-led pressure to severely curb Iran's oil exports mounts. Despite the rise, oils prices fell again on Thursday. Strong demand and supply outages underpinned the rally, but deep-seated problems and geopolitical tension in OPEC countries also played a role. In Iran, renewed USA sanctions threaten to take roughly 1 million barrels of the nation's supply off the market.

USA production jumped in recent years because of techniques including hydraulic fracturing, or "fracking", which is the use of chemicals, sand, water and high pressure to crack rock formations deep below ground, releasing more oil and natural gas.

Iran is one of the world's largest exporters of oil and the Trump administration's suffocating restrictions could affect the world's supply of the commodity.

Still, Cohen said it would take a "perfect storm" to push oil markets back above $100 a barrel, and that storm is unlikely to form. "But we shouldn't ignore the possibility and the willingness to keep prices from going too high too quick, which would arguably cut into their long-term demand prospects", he said.

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