The U.S. has restored sanctions against Iran as as President Donald Trump reaffirmed plans to impose more penalties on the country's oil sales in November. The Turkish lira fell to a new record low against the dollar amid a dispute with the US government, while the Russian ruble also dropped after USA sanctions on the country over its alleged involvement in poisonings in Britain.
Saudi Arabia's crude production dropped about 200,000 bpd last month, two sources at the Organization of the Petroleum Exporting Countries said on Friday, despite a pledge by the Saudis and top producer Russian Federation to raise output from July, with Saudi Arabia promising a "measurable" supply boost.
On Monday, WTI for September delivery increased by 1.62 percent and settled at 70.13 dollars a barrel on the New York Mercantile Exchange. The sanctions did not include Iran's oil exports. As a result, more USA crude oil would be shipped to Asian market.
The crude futures that China launched in March with ambitions to rival USA and European benchmarks seem to be dancing to an oil-market tune only they can hear.
Oil prices steadied on Wednesday despite relatively weak Chinese import data as the market was still supported by falling USA crude inventories and the introduction of sanctions against Iran. Long-term contracts - which involve the sale of cargoes of a certain quality, volume and price over a set period from as little as 6 months to multiple years - for American oil are uncommon and most deals are done on a spot basis after a decades-long export ban was lifted in late 2015.
A first batch of U.S. sanctions against Iran, which shipped out nearly three million barrels per day (bpd) of crude in July, officially came into effect Tuesday.
Space Force will be sixth branch of U.S. military, Pence says
Mr Trump's plans for a Space Force require approval by Congress, with a budget for the scheme to be outlined next year. Trump is obviously a fan of the new branch, tweeting " Space Force all the way! " as Pence spoke.
Chelsea rival Liverpool as Fekir says 'anything can happen - and quickly'
I feel great in the group. "We live well and I hope that OL will have a very good season". He said, speaking to Lyon's website, "As you can see, I am in Lyon".
Five killed, dozens shot in Chicago 'violent night'
He said what needs to be changes is "the culture that condones rather than condemns". "Tens of thousands of lives saved", he said. But officials say the spike in violence is at odds with the general trend in the city, where shootings are said to be decreasing.
Brent for October settlement traded at $72.44 a barrel on the London-based ICE Futures Europe exchange. Starting in July, South Korea is halting Iranian oil imports for the first time since 2012 amid pressure from the United States to discontinue purchases from Iran.
"With global demand remaining healthy and the global heatwave increasing oil demand, I think prices will remain well-supported in the near term", Hussein Sayed, chief market strategist at FXTM, said. Gasoline stocks rose by 2.9 million barrels, compared with an estimate for a drop of 1.7 million-barrel drop.
To recap this week's events, on Tuesday, the USA renewed sanctions against Iran that are expected to eventually remove about 1 million barrels per day of crude oil from the market. The country exported nearly 3 million barrels per day (bpd) of crude in July.
The sanctions are already brewing a potential confrontation between the United States and Iran as Tehran has threatened to block the Strait of Hormuz, an important sea route through which tankers ship more than 30 per cent of crude oil to the global market, in retaliation to the sanctions. The agency had previously expected crude output to average more than 12 million bpd by the fourth quarter of 2019, but revised that quarterly average downward to 11.94 million bpd.