USA softens stand on Iran oil; relaxation for India

USA softens stand on Iran oil; relaxation for India

So when President Donald Trump tweeted that he'd spoken with Saudi Arabia's King Salman, asking him to raise their oil production by two million barrels per day, and that they'd agreed - it raised some eyebrows.

Trump said the agreement was reached after a phone call with the Saudi King about oil production but mentioned no specifics. Iran, however, said it would be tough to erase its oil completely from the market by November, when US sanctions snap back into place.

Iran's OPEC governor Hossein Kazempour Ardebili said the U.S. ban amounted to "self harm", adding that Iran's position is that oil should not be used as a weapon or for political purposes.

In decades past, OPEC's strategy for managing the global oil price was partially based on oil production being a slow-moving beast that takes awhile to get going.

During OPEC's most recent meeting, members agreed to undo an agreement signed previous year to limit oil production. "The UAE wants to have stability in the oil market and like other Opec countries doesn't want to have a shortage of global supply due to some countries seeing lower production in H2 2018, such as Iran", Malik said.

Former Shell Oil President John Hofmeister on the outlook for oil prices.

"Member nations of the Organisation of Petroleum Exporting Countries (OPEC) and the leading non-OPEC oil producer Russian Federation, should maintain the Algiers Pact they forged in September 2016 so that oil prices will continue to ramp up", Sonatrach CEO Abdelmoumen Ould Kaddour said.

European countries, in particular France, Italy and Germany, have committed themselves to continuing to adhere to the Joint Comprehensive Plan of Action (JCPOA) even after America's exit from it and to import oil from Iran, and also suggested using the Euro to pay for imports.

President Trump also touted the promise in a tweet Saturday. That's led to higher prices at gasoline pumps in the it heads toward midterm elections for Congress.

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A survey of analyst expectations from S&P Global Platts revealed expectations of a drain on US crude oil inventories of 4.5 million barrels last week, adding support to the concerns about a market deficit.

The president also had tough words for other United States allies.

USA officials are pressing allies in Europe, Asia and the Middle East, including Saudi Arabia, to adhere to the sanctions, which are aimed at pressuring Iran to negotiate a new agreement to halt its peaceful nuclear programmes. The latter have soared in the last two years to around 400,000 barrels per day in July, worth around $1 billion at current market prices.

"The Libyan power struggle between the Tripoli-based National Oil Corp that is internationally recognised and controls the export sales and the NOC-East group based in Benghazi that now has physical control of the infrastructure. wipes out the planned increase from the OPEC+ coalition", said Stephen Innes, Head of Trading for Asia-Pacific at futures brokerage OANDA in Singapore.

Oil briefly touched $75 a barrell on Tuesday before retreating following the news of the Saudi government decision.

That kind of talk is part of a broader game Saudi Arabia played to master the oil market.

"We have been clear with countries and companies around the world that we are bringing severe economic pressure on Iran until the regime changes its destabilizing policies", Hook said.

Trump on Wednesday accused the Organization of Petroleum Exporting Countries (OPEC) of driving up fuel prices.

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