WTI Crude: Oil Prices Drop on Sanction Waivers
- Oil prices dropped on Monday in Asia as Washington granted sanction waives to Iran crude importers.
- Based on reports, the US granted China and India sanction waivers.
- Washington has reimposed oil and financial sanctions on Iran.
WTI CRUDE – On Monday, oil prices fell in Asia following the statement of Washington. According to the US government, it would allow eight countries to import Iranian crude. This consequently softened the tensions over tight supply from the sanctions that the US implemented today.
As of 10:47 PM ET (02:47 GMT), the December delivery of the Crude Oil WTI Futures declined 0.71% to $62.69 per barrel as of 10:47 PM ET (02:47 GMT). This was based on the New York Mercantile Exchange. Meanwhile, the January 2019 delivery of Brent Oil futures inched down 0.19% to $72.43 a barrel on London’s Intercontinental Exchange.
Meanwhile, Washington is likely to show the list of eight importers that the US granted sanction waivers. Last week, reports from different media revealed that China and India are included in the said list.
“Iranian exports and production had been declining steadily…Iranian exports show a decline of more than one million barrels per day (bpd) as of October from May,” said Edward Bell of Emirates NBD.
IRNA, Europe’s state news agency, reported that Iran encouraged the country for support on Saturday. Foreign Minister Mohammad Javad Zarif was in talks with Federica Mogherini, EU’s foreign leader. Zarif also went into conversations with his counterparts in Sweden, Germany, and Denmark.
Last Friday, Mogherini together with foreign ministers from Germany, France, and Britain released a joint statement. According to the joint statement, they expressed “regret” regarding the re-imposition of sanctions.
WTI Crude: Washington reimposes sanctions with Iran
On Monday, the United States reimposes oil and financial sanctions against Iran, increasing the pressure on the country. This move is for Iran to limit its missile and nuclear programs. Moreover, this move is to counter Iran’s broadening military and political influence in the Middle East.
The move will restore Washington sanctions derived from former President Barack Obama’s nuclear deal negotiation in 2015. Further, it adds 300 new designations to Iran’s sectors particularly in oil, shipping, insurance, and banking.
In May, President Donald Trump said that his administration was retreating from the “worst-ever” US agreement. Meanwhile, other parties to the deal such as France, Germany, China, and Russia have refused to leave.