The oil prices increased recently as the U.S. drilling for new production was stopped. This comes at a time when the market will be tight regarding the conditions once the U.S. sanctions against Iran’s crude exports. The sanction will start from November 2018.
The U.S. WTI (West Texas Intermediate) crude futures rose to $68.19 per barrel this week, up with 44 Cents or with 0.65%, from their previous settlement. Brent crude futures raised to 50 Cents or with 0.65% to $77.33 a barrel. As informed by Baker Hughes, the energy services firm, the U.S. energy companies reportedly have cut down two oil rigs in the last week, which brings the total count to 860. Outside the U.S., new sanctions against Iran’s crude exports—that start from November—were obtaining to increase in the crude oil prices. Energy consultancy FGE said that some major Iran customers such as India, South Korea, and Japan were already trimming on Iran crude.
Speaking of the crude oil, Iraq is extracting crude at record levels irrespective of the protest. Jabbar al-Luaibi, Oil Minister informed, “Iraq’s crude exports reached a record of 3.59 Million barrels a day.” The country has a capacity to pump about 4.75 Million barrels per day and currently producing crude at a level of about 4.36 Million barrels per day, as agreed with limits set by the Organization of Petroleum Exporting Countries (OPEC). The violent streets protests are engulfed in the oil-rich south have not affected the energy facilities. Iraq has provided protection in the south region of Basra after the protesters were demanding basic services and jobs. The country has been trying out to raise crude production rapidly among the hold-ups and investment restrictions that have seen the exit of Royal Dutch Shell Plc, one of the country’s biggest oil projects.