Oil prices drop as 'trifecta of trouble' may cause glut

Crude Oil

Crude Oil

He said the department had evidence that Iranian vessels are trying to evade US sanctions by disabling location transponders used to prevent collisions - with the goal of making Iran's oil exports harder to track.

Iran late past year inaugurated the port on the Indian Ocean, which is being built largely by India and is expected to provide a key supply route for Afghanistan while allowing India to bypass rival Pakistan to trade with Central Asia and Africa. Just $5 a month.

The United States on Monday re-imposed sanctions against Iran's oil exports to punish Tehran for its involvement in several Middle Eastern conflicts. The sanctions are aimed to hit not just Iran's energy sector but also its financial, shipping, and shipbuilding sectors. In May 2018, however, Trump withdrew the United States from the agreement, making a return of sanctions all-but-inevitable. But, fearing a price spike, it granted Iran's biggest buyers - China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey - sanctions waivers.

The latest batch of US sanctions severely impacts Iran's oil industry, the major source of the country's foreign revenue. The US would continue to exercise pressure on India to go towards zero imports over a period of time. With major cuts in the cheaper oil imports from Iran, the overall oil import bill is bound to rise further with its consequent adverse effect for the economy.

In post-settlement trade, both contracts extended losses.

The exemption for Chabahar is linked to the port's importance for both India and Afghanistan, and likewise the importance of India and Afghanistan to USA foreign policy aims.

More news: Women's Soccer Earns Second NCAA Bid
More news: Mass Effect’s N7 armour will be available in Anthem
More news: Volkswagen Tarok Pickup Truck Revealed In Brazil

"These activities are vital for the ongoing support of Afghanistan's growth and humanitarian relief", the spokesman said in a statement emailed to Reuters.

In May 2016, India, Iran and Afghanistan inked a pact which entailed establishment of Transit and Transport Corridor among the three countries using Chabahar Port as one of the regional hubs for sea transportation in Iran, besides multi-modal transport of goods and passengers across the three nations. The port stands in contrast to China's own port project in Gwadar, Pakistan.

Interested in Iran? Add Iran as an interest to stay up to date on the latest Iran news, video, and analysis from ABC News.

Waivers, however, were granted to eight major importers to continue buying Iranian petroleum products without penalty for another six months.

The exemption for Chabahar comes as good news for India and Afghanistan, but undercuts the Trump administration's portrayal of the sanctions as the "toughest ever". If the sanctions are meant to "convince the [Iranian] regime to abandon its current revolutionary course", as Pompeo said on Monday, such exceptions surely undercut that effort. "It can either do a 180-degree turn from its outlaw course of action and act like a normal country, or it can see its economy crumble", Pompeo said.

Recommended News

  • 'China, Pakistan satisfied with outcomes of PM Khan's visit'

    'China, Pakistan satisfied with outcomes of PM Khan's visit'

    Therefore, petitioner added, Khan does not fulfill the criteria under Article 62 and 63 of the constitution. Feeling very confident after returning from a productive visit to China led by PM Imran Khan .
    Ariana Grande Trips, Tears Up In Delightful 'Thank U, Next' Performance

    Ariana Grande Trips, Tears Up In Delightful 'Thank U, Next' Performance

    Grande, who was recently named Billboard's Woman of the Year , later tweeted that her exes "heard it before it came out". The 25-year-old singer took to Twitter on Wednesday to lament the message behind her 2018 song, "No Tears Left to Cry".
    Georgia in top five of College Football Playoff rankings

    Georgia in top five of College Football Playoff rankings

    What also helps is that No. 25 Virginia, No. 20 Texas A&M, No. 17 Texas, No. 16 Iowa, No. 15 Utah and No. 14 Penn State all lost. Michigan State 19. "Strong offense, struggling on defense", Mullens said.
  • Melbourne attack: One dead after deadly Bourke Street knife rampage

    Melbourne attack: One dead after deadly Bourke Street knife rampage

    About 6pm , Victoria Police Superintendent David Clayton holds a press conference just metres from where the incident unfolded. Police are not looking for anyone further at this early stage. "A small number of people are being treated for stab wounds".
    Whitaker was campaign chairman for Mueller witness

    Whitaker was campaign chairman for Mueller witness

    Newly emboldened Democrats have said any attempt to terminate Mr Mueller's investigation would amount to a constitutional crisis. The special counsel has also been investigating whether Mr Comey's firing amounted to obstruction of justice.
    California bar shooting: Authorities declare gunman dead; 11 people injured

    California bar shooting: Authorities declare gunman dead; 11 people injured

    Law Enforcement and First Responders, together with the Federal Bureau of Investigation , are on scene. The bar was hosting its weekly "College Country Night" when the incident was reported around 11.20 pm.
  • Ottawa Senators players caught on camera mocking coaches, team during Uber ride

    Ottawa Senators players caught on camera mocking coaches, team during Uber ride

    Uber Canada's General Manager Rob Khazzam said filming riders without their consent was a violation of their terms of service. The spokesperson said Uber helped "get this video removed" but did not say what sort of discipline the driver might face.

    NT police search for missing boy after three found dead near auto

    The search was set to continue until police were able to completely rule out that there weren't other people in the auto . This morning, police said a 12-year-old boy, who they believed was with the group, was not found among the dead.
    Three Final Fantasy XV DLC Packs Cancelled as Director Quits

    Three Final Fantasy XV DLC Packs Cancelled as Director Quits

    The announcement comes on the heels of game director Hajima Tabata's departure from Square Enix. Tabata officially resigned from Luminous Productions and Square Enix on October 31st.
  • Who says we can't fix things? We are closing the ozone hole!

    Who says we can't fix things? We are closing the ozone hole!

    An amendment to the Montreal Protocol that goes into effect next year would cut use of some of those gases. Banned CFC emissions are increasing in China , but the Chinese government has promised to fix the problem.
    China unveils AI news presenter

    China unveils AI news presenter

    Xinhua News claims the presenter " can read texts as naturally as a professional news anchor ", though not everyone may agree. While identical in appearance, the two versions are created to appease both English and Mandarin-speaking watchers.
    Diablo Immortal: Fans Loudly Deny Blizzard's New Mobile Venture!

    Diablo Immortal: Fans Loudly Deny Blizzard's New Mobile Venture!

    He said in a press conference that Diablo Immortal is only the beginning. Diablo is an important, tentpole franchise for Blizzard . Mobile can compete for a hardcore gamer's attention.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.