According to the latest USA census exports data, from an average of 29,000 b/d of crude flow from the United States to India in the January-April period, the volume jumped sharply to 152,000 b/d in May and 261,000 b/d in June, a new monthly record.
Of course, the Saudis were just the tip of the iceberg in terms of factors compelling experts on Monday to foresee gloomy times ahead: worry over the USA sanctions against Iran seemed to reach a fever pitch, with Michele Della Vigna, head of energy industry research at Goldman Sachs International, telling Bloomberg, "We are eating very quickly through OPEC's spare capacity... we are going into a very, very tight oil market". The trading price ranged between US$76.11 per barrel, and US$69.71 per barrel. In the previous week, imports averaged 7.7 million barrels daily.
Our outlook for crude oil remains neutral. "We had been regularly taking spot cargoes but are now also looking at tender-term deals where monthly cargoes can be booked through a tender purchase", he said.
"Without the extra Saudi oil we had in June, it's hard to crunch the numbers and get a lower price going into the end of the year", said John Kilduff of Again Capital.
The Guards commander, Mohammad Ali Jafari, was quoted by the semi-official Tasnim news agency as saying: "We will make the enemy understand that either everyone can use the Strait of Hormuz or no one". China's foreign ministry on Wednesday stated that Beijing will continue its business with Iran as does not violate any UNSC resolution.
"Although US crude is seen as a key alternative for India to fill in the gap left by Iran, the bulk of the lost heavy sour Iranian grades has to come from the Middle East and Latin America". However, Iranian exports will fall.
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Trump, describing her as "irrational" and "emotionally inspired" throughout the Brexit negotiations. May on Friday cut short her holiday in Italy for a meeting with French President Emmanuel Macron.
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In the final minutes of trading on Tuesday, shares hit $116.56 (roughly Rs. 8,000), an increase of nearly 10 percent from a year ago.
French bank Societe Generale said there was now a "comfortable supply" in physical crude markets, but noted "Iran sanctions will take another one million bpd off the markets". "Iranian imports will likely nosedive on high compliance".
On Friday, crude oil futures ended down $0.47, or 0.70%, at $68.49 a barrel, after data showed oil output in Russian Federation to have increased sharply by 150,000 barrels per day in July, compared to a month earlier.
The oil prices had a slightly downtrend movement in the week ending August 3, posting a fourth loss in the past five weeks.
Vladimir Putin stated on Tuesday that he is deeply disappointed by the USA sanctions on Iran. As a result, more US crude oil would be shipped to Asian market.
Renewed sanctions are part of the Trump administration's strategy to deny resources to the Iranian leadership.
Unipec and Sinopec, Asia's largest refiner and biggest buyer of United States oil, did not respond to requests for comment. "So how are you going to buy this stuff without going through the dollar market?"