There was also the fear that if oil imports from Iran were completely stopped, the supply of crude oil would not be booming any more due to the impact of supply. It was decided to have negative impact on industries across the world, and some experts were also feared that if the economies do not fall prey to ‘another recession’.
Crude oil prices reached $ 86 a barrel in early October and it was the highest in four years. According to Ship Tracking Firm Caplar, the supply of oil from Iran was greatly reduced due to US sanctions. In June this year, the volume of 26.6 million barrels per day decreased to 17.6 million barrels.
After sanctions, there is an estimated 10-15 million barrels of oil supply coming from Iran to other countries.
The economies of the world, including India, were troubled by this and the fears of economy slipping down the economy. But in the last 15 days, the boil seems to be cold.
Although some KnowledgeStorm are considering it as a temporary phase and are feared that in the coming days when the supply of oil from Iran was too little or the claim of US President Donald Trump’s ‘Zero Export’ proved to be true, then ‘the real game of oil’ Will come out.
Prices of Crude Oil Will Increase
But will the prices of crude oil rise after the US sanctions come into force?
Knowledgeable answers to this question are given in both yes and no.
Eonomist James Williams, “It is not yet known exactly where countries, except India, Japan and South Korea, have got partial exemption from these restrictions, how much of this country is from Iran There is nothing clear about this yet, but it is certain that the Trump has to soften its position and the country will have to give some exemption from the restrictions. It is. “
Before making any predictions about oil prices, it is important to know how much oil is coming out in the market.
Trump’s ‘Real Game’
Surveys conducted by News Agency Bloomberg and Reuters this week show that there is no possibility of a surge in oil prices because the Organization of Oil Exporters Countries (OPEC) has increased their production and this is the highest level since 2016. Is on.
OPEC is the third largest oil producing company. According to the International Energy Agency, OPEC’s subsidiary Russia has made a huge increase in its oil production from May to September.
According to the agency, from May to September Russia has increased four million barrels of oil production per day and is currently producing the highest oil after the Soviet era.
According to experts, Iran is going to benefit most of the oil restrictions on Iran.
America’s oil production is also expected to reach its highest level this year and this is because the Shell Gas Revolution
According to the Energy Information Administration Forecast, in the year 2019, the US oil production is projected to grow by 10 percent and reach the level of 1.18 million barrels per day. If that happens, then America will become the world’s largest oil producing country.
According to experts, there is less chance of a surge in oil prices, because in the event of very low or close supply of oil from Iran, there will be competition for securing its share between other oil producing countries, they will increase production and thus control oil prices. Will stay in
Trump has therefore given the concession
US President Donald Trump rejected the agreement with Iran in 2015, terminating it as “extremely bad”. Under Barack Obama’s tenure, the stringent restrictions on Iran were lifted in lieu of stopping the nuclear program.
However, many European countries in this agreement have said clearly that they do not agree with the Trump’s stand and that the views of Trump will not ban Iran.
Trump has said that such companies are exempt from these restrictions, which are operating in Iran while operating in Iran, but American companies have been warned to pay the punishment, who do business with Iran.
Apart from this, no American company will be able to sell gold, precious metal and automotive parts to Iran.
Trump has also warned that if a country refuses to enforce its sanctions imposed on Iran, then it will also be banned. Although some media reports later said that the Trump Administration has given some relaxation, eight countries including India, Japan, South Korea have given some concession and have said that they take some time to completely stop importing oil from Iran. Can.
US Secretary of State Mike Pompey said, “We are giving temporary concession to eight countries, but only because they have made a huge reduction in oil imports from Iran in the last few years and have shown the intention to bring it to zero level.”
India imports the largest oil from Iran, followed by India’s number. South Korea is in third position. Turkey is fourth and Italy is fifth. It is clear that trump has eased three of the top five countries importing oil from Iran, which means that the Trump also has a fear that it would be difficult for these countries to adhere to their ‘order’.
What America Wants from Iran
The United States says that the Islamic Republic does not intend to make a coup in Iran, but is pressurizing Iran to abandon its nuclear program.
The Trump Administration wants Iran to make changes in its policies and to return to the negotiating table on the nuclear program again.
US Secretary of State Pompey said, “We want people of Iran to get the chance, the way they want the government, a government that does not put their money in works that spread disturbances around the world.”