Crude Oil Prices Slump 20% From October Highs, Enter Bear Market

Forty years of American hostility’ Iran releases video responding to new US sanctions

Forty years of American hostility’ Iran releases video responding to new US sanctions

The United States on Monday re-imposed oil and banking sanctions on Iran that where lifted under the 2015 nuclear deal but granted waivers to eight major importers to continue buying Iranian petroleum products without penalty for another six months.

In Moscow's first official reaction since the restoration of Washington's bans on Tehran, Russian Foreign Minister Sergei Lavrov said on Tuesday that the USA sanctions are "not legitimate".

TransCanada Corp.'s long-troubled Keystone XL oil pipeline project hit another roadblock as a U.S. District Court in Montana ruled it must wait for a further environmental review.

Lavrov emphasized that Russian Federation and its European partners were looking for ways to maintain economic ties with Iran.

While Iranian oil exports are expected to fall because of USA sanctions that took effect on October 5, reports from OPEC and other forecasters have indicated that the global market could see a 2019 supply surplus as demand slows.

"It will be a hard period but Iran's economy will withstand it for various reasons", a second diplomat told Reuters, "including (the fact of) Russian Federation being under (US and EU) sanctions, Saudi Arabia having its own financial and political issues, and (trade war) between China and the United States". Moreover, Trump's sanctions against Iran's financial sector essentially make 30 banks and their subsidiaries off-limits to foreign lenders, undermining its means to facilitate trade. If all Iranian oil is withdrawn from the market, it would lead to a huge increase in oil prices which would be a shock to the global economy.

China's crude imports rose to 9.61 million barrels per day (bpd) in October, up 32 per cent from a year earlier, customs data showed.

The United States "sincerely hopes" accidents do not occur, he said, but he noted that an Iranian tanker was involved in a major accident in the East China Sea in January that resulted in the loss of the ship and all its crew as well as a massive oil spill.

There was no need for India to cravenly accept the U.S. sanctions on Iran. "Even without the exemptions, we will sell our oil". That initially helped keep crude oil prices at multiyear highs, but as Washington granted waivers to the biggest buyers including China, India, and South Korea, investors turned sour on light and sweet.

Stating that it would mostly be the Iranian people than the government that would have to bear the effects of the sanctions, Zarif said that the government has undertaken steps in order to minimise the effect on the public.

Italy and Turkey have been importing around 200,000 bpd of oil from Iran over the past two years, with Greece importing less than 100,000 bpd. We have so many countries that are on our side.

Unlike India, China has denounced the new U.S. sanctions. In May 2018, however, Trump withdrew the United States from the agreement, making a return of sanctions all-but-inevitable. However, this time the USA is alone, and the entire world, except for a few countries, have vowed to maintain business with Iran.