Daily Management Review

Reuters: US sanctions against Iran and Venezuela create a shortage of heavy crude


Tightening of US sanctions on the Iranian oil sector will add to the many factors holding back world supplies of heavy and medium oil and increase its value, Reuters writes.

New restrictions on Iranian exports complement the previously imposed sanctions by Washington on Venezuela and the obstacles to mining in Angola.

In November, after leaving the international nuclear deal with Iran, the United States imposed sanctions affecting Iran’s oil sector.

The Donald Trump administration provided special exemptions for eight countries, allowing them to temporarily import Iranian oil even after the imposition of sanctions. However, exemptions from sanctions for the purchase of Iranian oil will cease to operate on May 2.

US officials say the global total oil supply will still remain sufficient, not least because of the boom in American shale oil. But most of the supplies, which remain in abundance, account for lighter varieties.

While some customers are willing to buy heavy and medium oil at elevated prices, others are holding back. For example, some of the regular customers of the Angolan state-owned oil company Sonangol refused to charge a premium, which prompted the company to offer oil to other buyers.

The current confrontation between buyers and sellers can partly be explained by uncertainty about how much Iranian oil can still flow to the market, especially to China, which is the largest consumer.

Analysts expect China to disregard the lifting of anti-Iran sanctions, especially since Washington may not want to impose sanctions on Chinese companies importing Iranian oil, which at the same time are key buyers of American oil and liquefied natural gas. This would make it difficult for sellers to raise prices.

source: reuters.com

Science & Technology

Tech giants face stricter government regulation in the US

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”