Iranian "ghost tankers" are dismantling their vessel tracking systems upon leaving the Strait of Hormuz in a bid to sell oil secretly around the world as Tehran braces for the Trump administration to reimpose harsh sanctions on its energy sector. On Tuesday, Brent oil hit $82 per barrel for the first time since 2014.
Why it matters: The increase in oil prices risks hurting the U.S. economy, a bright spot on Trump's record, just ahead of the crucial 2018 mid-term elections.
Speaking to reporters after addressing the UN General Assembly, Macron said Iran should be allowed to keep selling oil and called for dialogue as he rejected a USA push to isolate the clerical regime. While some, such as Citi's Ed Morse, suggests that an SPR sale could "knock a couple of bucks off the oil price", others, such as Hess Corp's Greg Hill are skeptical: "It won't drop oil from $80 to $65, and any effect would be short-term".
And then they take advantage of us by giving us high oil prices.
US President Donald Trump is the "main culprit" to blame for a recent surge in oil prices, Iranian Oil Minister Bijan Namdar Zanganeh said on Wednesday.
Kirk is a storm again
The system is expected to run into heavy wind shear as it enters the Caribbean Sea, which will likely work to tear it apart. Little change in strength is forecast until Kirk moves through the central Lesser Antilles Thursday afternoon and evening.
Mr. Rouhani also did not rule out talks, but a change in USA policy will be needed first.
"This is the oil market's response to the OPEC and allies' refusal to step up its oil production", said Carsten Fritsch, commodities analyst at Commerzbank in Frankfurt.
The so-called "OPEC+" group, which includes producers such as Saudi Arabia and Russian Federation, met over the weekend but did not see the need to add new output.
The IIF said such a system would likely fail to persuade major European companies to do business with Iran for fear of USA sanctions. With oil prices hitting a four-year high of $82 per barrel, the U.S. leader slammed the OPEC oil cartel after Saudi Arabia and Russian Federation rejected calls to increase production amid looming United States sanctions on Iran's oil exports.
"We are not going to put up with it, these disgusting prices, much longer". "We believe the combination of tight supply, healthy demand, falling global inventories - down from already under-stored levels - and anemic spare capacity helps support an oil price that could end the year above 90 dollars", he said. Last week, gasoline stockpiles added 1.5 million barrels while distillate inventories went down by 2.2 million barrels.