Earlier, due to the United States imposed sanctions on Iran and Venezuela's production continued to decline, crude oil rose to a high of a year and a half. However, as Saudi Arabia and Russia announced that they would consider raising the production ceiling, oil prices have fallen sharply since last week. But Croft said that due to concerns about the proliferation of nuclear weapons, oil prices may soon reverse the dFXCM crude oil contractecline.
President Rouhani has also written to France, Germany and the United Kingdom that have signed the agreement, stating that the time to save the agreement has passed. Chief of Staff Mahmoud Vazi said that Rouhani clearly expressed Iran's requirements in his letter.
In its latest monthly report, the International Energy Information Agency lowered its estimate of global oil demand growth in 208 to 400,000 barrels per day, which was previously estimated to be 500,000 barrels per day. The agency said that if such a large increase does not affect demand growth, It will be extremely rare, especially since end-user subsidies have been reduced in some emerging countries in recent years.
There are fundamentally strong expectations of global demand, and the geopolitical conflict in the Middle East has intensified. Global hedge funds have been almost overwhelmingly optimistic about oil prices, especially the international Brent crude oil. The head of Barclays Energy Commodity Research even believes that oil prices may even return to $00 within this year.
Although Europe has opposed the United States' withdrawal from the Iran nuclear agreement before, and many countries have indicated that they will continue to buy Iranian crude oil, this does not have any effect. Because it is the company that buys Iranian crude oil, not the country. The United States is not threatening to sanction countries, but companies. The sanctions imposed by the United States on the purchase of Iranian crude oil companies are sufficient to stop these companies from purchasing. They will also prevent international shipping companies from transshipping crude oil and prevent insurance companies from underwriting crude oil transactions.
EIA data showed that crude oil processing volume at refineries fell by 900,000 barrels per day, and capacity utilization fell by 5 percentage points to 90.4%, the lowFXCM crude oil contractest since May, driven by seasonal declines in refinery activities in the Midwest and East Coast. In addition, the U.S. net crude oil imports fell by 450,000 barrels per day last week.