Wednesday, September 26, 2018

"Oil Market to Be 'Well-Supplied' Before More Sanctions Hit Iran - US Envoy"

Will President Trump order that oil be released from the Strategic Petroleum Reserve?
That view is making the rounds and has tempered the velocity of the move higher:

After trading above $72 on both Monday and Tuesday WTI is recently at $71.88 despite the fact neither Saudi Arabia nor Russia seem particularly interested in increasing supply in response to Trump's exhortations.
So, SPR?

From Sputnik, Sept. 26:
US Special Envoy to Iran Brian Hook told Reuters on Tuesday that before US sanctions targeting Iranian oil exports come into effect, which is expected to happen in November, the US will "have a well-supplied [oil] market."
The US re-imposed sanctions against Iran during the Trump administration after the president declined to renew US involvement in the internationally-negotiated Joint Comprehensive Plan of Action (JCPOA), or Iran Nuclear Deal, in May. The US sanctions were in place prior to the 2015 agreement but were halted in compliance with the terms of the deal.

Hook's statement comes as crude oil prices reach four-year highs at $82 a barrel.

The special envoy was recently appointed to head the State Department's Iran Action Group. 

On Monday, the EU foreign policy chief and foreign ministers of Russia, China, France, the UK, Germany and Iran decided to establish a mechanism known as a "special purpose vehicle" to enable EU companies to transact with Iran. The special mechanism to facilitate trade of the EU companies with Iran in the context of the US sanctions against Tehran is unlikely to change economic realities and businesses' preferences of the American market over Iranian, Hook told reporters on Tuesday.... MORE