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OPEC member complains U.S. president is driving up prices

13 Mai 2018

The Trump Administration's sanctions will hit Airbus and Boeing to the tune of roughly $39 billion.

For all these reasons, Saudi Arabia and other OPEC members will come under intense pressure to raise their output to make up for any loss of Iranian barrels.

But Boeing (BA) was hit with bad news as Treasury Secretary Mnuchin announced that the aerospace giant's license to sell almost $20 billion in jets to Iran would be revoked.

The aircraft sales were among the most sought-after contracts for Iran.

"None of these three countries will be prepared to fully comply with United States demands; however, the more significant part of Iranian exports is where Iran earns hard currency from the sale of its crude".

Benchmark 10-year notes fell 9/32 in price, pushing their yield up to 3.0042 percent. No deliveries have been made yet. Putin has long advocated for a new financial system with China that would circumvent the reach of USA sanctions, which also target his country. General Dynamics (GD) added 0.4% to yesterday's 1.6% rally.

While European countries are staying in the deal, Airbus will likely have to pull out of the contract as it needed a US license for the deal since over 10% of parts and labor were provided by USA companies.

But Iran re-emerged as a major oil exporter in January 2016 when global sanctions were suspended in return for curbs on Iran's nuclear programme. Since sanctions were eased as of January 2016, Iran's crude production has nearly doubled and its exports soared last month to record levels.

He said there might be some exclusions, but he did not elaborate.

"Two sources, speaking on condition of anonymity, said the independent external audit has found the proven oil reserves to be at least 270 billion barrels, which is slightly higher than the 260.8 billion barrels the company reported in its 2016 annual review", said Reuters.

But what happens to companies who continue to deal with Iran still needs to be clarified, she said.

Ship insurance was a critical hurdle when sanctions were previously imposed on Iran because tanker operators couldn't obtain the level of cover that's considered standard across the oil industry. For oil and other petroleum products there will be a 180-day period in which people doing business with Iran will be able to wind down those operations before facing penalties.

Under the deal reached in 2015 between Iran and six major powers, Tehran agreed to curb its nuclear programme in return for lifting most global sanctions that crippled the country's economy. But the current set of sanctions have only increased the headache of the diplomats in New Delhi. It remains unclear how much those nations will comply, if at all.

While U.S. President Donald Trump has threatened to pull out of a deal between Iran and world powers as a May 12 deadline nears, he's signaled he'll be open to negotiation.

OPEC kingpin Saudi Arabia indicated it was ready to act. Longtime energy economist Philip Verleger believes the run-up is enough to trim growth "because consumers are going to have to cut expenditures on stuff other than gasoline".

OPEC member complains U.S. president is driving up prices