Korean oil importers improvise vs United States re-imposition of sanctions on Iran

Korean oil importers improvise vs United States re-imposition of sanctions on Iran

Brent oil had climbed 27 cents, or 0.4 per cent, to $72.85 a barrel by 0655 GMT.

Not only is U.S. output at a record level but other major oil producing nations such as Russian Federation and the members of the Organization of the Petroleum Exporting Countries are having trouble reducing their production. But following the lift in worldwide sanctions on Iran in 2016, the Middle Eastern country's share within Korea's total crude oil imports sharply expanded to 10.38 percent in 2016 and 13.2 percent in 2017. Saudi Arabia dismissed assertions that it'll oversupply demand as "without basis" and said it "does not try to push oil into the market beyond its customers' needs".

Oil prices went up on Wednesday after official data showed that US gasoline inventories declined more than expected.

Prices have been dragged down by concerns about oversupply as some production returned after outages, while trade tensions stoked fears of damage to economies and commodities.

The US State Department has also expressed that it is not anticipating providing any waivers or extensions, which means that there will be no exemptions for anyone.

WTI crude oil prices built on overnight recovery move from near one-month lows and edged higher through the early European session on Friday.

Saudi crude exports fell by about 500,000 barrels a day to 6.7 million in the first half of July compared with the same period in June, tanker tracking by Bloomberg shows.

Furthermore, if any cartellike actions by the US were to hike oil prices, American consumers would suffer since the country remains a net oil importer. US West Texas Intermediate (WTI) was $1.11 higher at $69.89.

"Production disruptions and large supply shifts driven by US political decisions are the drivers of this new fundamental volatility, with demand remaining robust so far", Goldman Sachs said in a note on Monday, adding that Brent Crude is expected to trade in the $70-$80 a barrel range amid this new fundamental volatility. U.S. Administration is actively considering releasing part of the 660-million-barrel SPR, with options ranging from a test sale of 5 million barrels to a release of as much as 30 million barrels, and even higher if coordinated with other countries.

Grassley said in a statement, "It's long past time to put an end to illegal price fixing by OPEC", and he added that the feds are "committed to reducing our reliance on foreign oil, especially when it's artificially and illegally priced; our bill shows the OPEC members we will not tolerate their flagrant antitrust violations". Nonetheless, the jump in crude inventories may suggest that U.S. production is able to keep up with strong demand.

OPEC had announced it would add 1 million bpd of crude to the market.

The incumbent United States administration has lobbied Saudi Arabia to increase output in order to offset the impact of its sanctions on the oil industries of Iran and Venezuela - two of the world's main crude oil producers.

He said Saudi Arabia's crude oil exports in July would be roughly equal to June levels.

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