The Trump Administration’s announcement that they will no longer offer
waivers to countries that need to buy Iranian oil sent the price of oil
rising in post-Easter trading. Prices for Brent crude were up 2.6% in
morning trading, with expectations that the cuts could raise prices even more.
Iran exports around a million barrels of oil daily. The waivers are
intended to drop exports to zero, though the Chinese intend to keep
buying, the expectation is that the market will be losing a lot more
supply than it can afford.
The US talked up the idea that Saudi Arabia would replace the lost
supply, and while Saudi officials indicated they were considering
pumping more, they added that there was “no rush” and they plan to see the impact of the sanctions first.
Iraq, who was also expected to try to cash in on rising prices with more
production, appeared to reject the idea, saying they don’t intend to
take any unilateral decision on the market, and don’t think any other
OPEC members should either.
This will probably lead to further erosion of the petrodollar. Necessity would be the primary motivation.
The rise in oil prices could have serious repercussions for the world economy, even if the shortfall is tardily made up by the Saudis. The real danger, what’s being witnessed now only the first step, is the eventual direct confrontation between the US and Russia. Kremlin has too many vital interests at stake in region, as has Washington. History demonstrates: when core interests clash rival powers go to war.
https://www.ghostsofhistory.wordpress.com/
Rising oil prices will have a wonderful effect on the world economy: utter dependence on cancerous growth will end one way or another. Unsustainable practices end sooner or later, like it or not.
The other factors are leading humanity to world war.
This is just totally, sadistic, evil behaviour by the US, and will harm the ordinary Iranian citizens, making them dislike the West even more.
If the US boxes a country into a corner as it is doing with Iran, isn’t war the logical end objective? If you take away a country’s livelihood, isn’t that a declaration of war? If Iran can’t sell its oil and can’t trade, what does America expect it to do?
They did it to Japan prior to WW2.
BAS, of course it is an act of war on the part of the USA, and Trump in particular. Iran may close the Straights, SHTF then.
Countries like Iran and Venezuela are keeping price of oil low. So the best thing to do is, create a shortage by stopping oil exporting from those countries. By summer they want to raise the price of a barrel to $100 or more.
Anal….,You are mistaken.