It is worth mentioning that South Korea’s oil prices have skyrocketed because of obedience Kansas crude oil pricesto the US oil ban on Iran. After Trump announced a ban on Iranian crude oil imports, South Korea was the first to stop imports. After stopping the import of Iranian oil, South Korea mainly imported oil from Dubai, but the price of Dubai oil was much higher than that of Iranian oil, reaching US$89 per barrel, an increase of US$2 from the previous month. While Iran sells oil at low prices because of the ban, South Korea can only watch.
OPEC may decide that all oil-producing countries should restore production targets set out in existing supply agreements. This will increase oil production by only 0 million barrels a day, because Venezuela and other countries will not be able to respond. Only Saudi Arabia, Russia, the United Arab Emirates and other countries with surplus production capacity can increase the limited supply.
Although Saudi Arabia and Russia did not give specific output reduction rates, an OPEC consulting team suggested that the current market is oversupply and it is necessary to reduce production by 0 million barrels per day on the basis of October. Saudi Arabia also suggested that it is best to start cutting output by 0 million barrels per day in 209.
Nigeria’s oil exports are also declining because an important oil pipeline has been closed. Foreign media estimates that Nigeria’s oil exports may fall from just below 800,000 barrels per day in June to 40,000 barrels per day in July. In addition, Nigeria's Bonny light oil export depot may be affected by force majeure.
In this regard, OPEC Secretary-General Barkin said: The market is largely driven by the decisions of other countries. The rise in oil prices is driven by the perception that there may be a shortage of oil supplies, and now the market’s concern is whether other countries can make up for Iran’s supply losses. He said that such price fluctuations hindered the joint efforts of OPEC and Russia and other non-OPEC oil producing countries to balance supply and demand. But unrelated and non-fundamental events may undermine efforts to stabilize the oil market.
The proposal will further restrict countries that have more capacity to extract more crude oil from continuing to reduce production. However, Iran, Venezuela and other countries have publicly expressed their opposKansas crude oil pricesition to measures to reduce the scale of production. Forexlive website commented that no matter how the final increase in production scale, the market will expect OPEC production to increase, but the subsequent response will depend on the scale of production increase and specific conditions.
Hansen said that if Trump abandons the Iran nuclear agreement, global oil prices are at risk of soaring. If the United States restarts sanctions on Iran, it will damage Iran’s ability to trade in US dollars. He also added that if other OPEC members do not increase production, if the United States again imposes sanctions on Iran, 100,000 to 500,000 barrels of Iranian crude oil will be withdrawn from the market every day.
Iranian President Rouhani warned US President Trump not to withdraw from the Iran nuclear agreement, otherwise he will face serious consequences. Another senior Iranian official said that if the Iran nuclear agreement is abandoned, Iran may withdraw from the Nuclear Non-Proliferation Treaty.