Jeff J Mitchell Getty Images
Crude oil is produced by a small group of countries, which include the United States, Saudi Arabia, and Russian Federation.
ANALYST'S TAKE: "Geopolitical risks are heightened especially if Iran retaliates, but it could wait and see if the deal is completely undone or if there is scope for it to continue without the U.S.", Mizuho Bank said in a daily commentary. Trump said the US will institute "the highest level of economic sanction" against the country. Today, Iran exports more than 6.5 million barrels of oil every day. Polyone, Univar and KMG Chemicals have at least half of their production costs in oil and products derived from petroleum, according to Goldman Sachs. Only Russia produces more, at around 11 million bpd. Some gains were later pared on the USA decision to withdraw from the Iran deal.
French President Emmanuel Macron, who personally lobbied Trump to remain in the nuclear deal during a state visit to Washington last month, said on Twitter that "France, Germany, and the United Kingdom regret the USA decision to leave the JCPOA", using an acronym for the agreement.
However, Zanganeh made no mention of the multiparty nuclear accord that eased sanctions on Iran starting in January 2016, but he warned that the insertion of politics into the energy market will hurt producers and consumers alike.
Similar sentiments prevail in Asia. The June crude contract retreated US$1.67 to US$69.06 per barrel.
Energy analysts expect other major customers of Iran - including close U.S. allies Japan and South Korea - to adhere more closely to new sanctions.
No doubt that any sanctions on Iran oil shipments will lead to higher oil prices, but Iran isn't the only source of risk nowadays. "Iran's oil exports could credibly be curtailed by 200,000-300,000 bpd".
Piscotty's mother passes away after battle with Lou Gehrig's disease
You just can't put a template on how to go through that and how he's supposed to handle it. Piscotty, who grew up in Pleasanton and starred at Stanford, asked the St.
TV3's Malone set to exit Germany in €18bn Vodafone deal
This includes businesses in Germany, Hungary, Romania and the Czech Republic. Vodafone shares were up more than 2% at the start of trading.
Futures higher as oil hits $70
European markets closed higher yesterda: London's FTSE was closedt, Paris added 0.3 per cent and Frankfurt gained 1 per cent. That is well above the long-term average of 64 percent and the average of 75 percent over the past four quarters.
"The geopolitical consequences of a possible dismantling of the (Iran deal) would likely play a larger and long-lasting role in pushing oil prices higher than short-term policy uncertainty", the bank said.
USA crude oil prices rose more than 70 cents, or 1.1 percent, pushing above $70 a barrel for the first time since November 2014 as the crisis in OPEC member state Venezuela threatened to further crimp its production and exports. Saudi Arabia will also have an easier time convincing all of its partners, including Russian Federation, to extend quotas into 2019.
So how far are these countries from a major supply disruption that will affect prices and the balance of the oil market?
Meanwhile, on the other side of the world, Bijan Zangeneh, oil minister for Iran, a nation that has persistently sought to pump all out regardless of the global consequences, told media that reasonable oil prices would "encourage producers to keep supply while it would prevent global markets from plunging into instability", and he added that "manufactured tensions" were the reason behind the current rise in oil prices. And the impact on the global oil market may be less dramatic than some feared.
Separately, a report on US job openings, known as the Job Openings and Labor Turnover Survey, or JOLTS (http://www.marketwatch.com/story/for-the-first-time-ever-theres-a-job-opening-for-every-unemployed-worker-2018-05-08), showed a record 6.6 million job openings in March.
Pence's remarks came as the US Treasury Department imposed new sanctions on three Venezuelans, including a former senior intelligence official over narcotics trafficking. Brent, the global benchmark, is up around 13%. "We see inventories reaching a 10-year low by the end of this year".
With the move already priced into markets, WTI and Brent sank soon after the announcement with some commentators suggesting Trump could still pedal back on some of his rhetoric and shift to a more diplomatic tone.
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