US sanctions on Iran are set to keep oil prices elevated, analysts say

collected by :Frank Ithan

U.S. sanctions on Iranian crude could soon push oil prices above $90 a barrel, one analyst told CNBC ahead of the penalties snapping back into place. "A lot of people think China can just buy all of the Iranian oil but they came out and said: 'Yes, we may not reduce but we are not going to increase our intake either.' So, you could see a significant crunch in terms of lost supplies into the market and then that obviously means higher prices," she added. Investors are seen weighing bullish factors that include potential supply disruptions to Iranian crude exports against more bearish indicators, such as a ramp-up in production by OPEC and its allied partners. Alongside Russia, OPEC kingpin Saudi Arabia and other members of the Middle-East dominated oil cartel agreed in late June to begin increasing production by up to 1 million barrels per day starting in August.

Texas to pass Iraq and Iran as world's No. 3 oil powerhouse

In fact, Texas is pumping so much oil that it will surpass OPEC members Iran and Iraq next year, HSBC predicted in a recent report. Some oil execs believe the amount of oil in the Permian rivals Saudi Arabia's Ghawar Field, the world's largest conventional oilfield. The United States is pumping more oil than ever before, making it less reliant on the turbulent Middle East for imports. That means Texas will account for more than half of America's total oil production. Oil supplies from Iran are likely to plunge due to tough sanctions from the United States.

US sanctions on Iran drive oil prices up with experts warning costs could rise again

As it stated in Oil prices have risen after US sanctions on Iran kicked in again, with global benchmark Brent Crude rising 1.4 per cent to hit $74.84, as experts warned further increases could be on the way. Donald Trump introduced "the most biting sanctions ever imposed", as he described them in a tweet on Tuesday, three months after he revealed he was pulling the US out of the seven-party Iran nuclear deal.

China rejects US demand to reduce Iran oil imports: report

Bloomberg cites officials as saying that Beijing turned down a Washington request to cut imports from Iran. China has rejected a demand by the United States to cut Iranian oil imports, according to Bloomberg news agency, which cited two officials familiar with the negotiations. Washington also imposed a series of additional sanctions on Iranian entities and individuals, as well as foreign companies in Iran, squeezing Iran economically. "The Americans say they want to reduce Iranian oil exports to zero ... In July, Beijing lifted monthly oil imports from Iran by 26 percent.