2019-04-29 11:30:00
OIL PRICE: WILL BE $100
PLATTS - A top Iranian military official repeated a threat to shut the Strait of Hormuz if the country's oil shipments are blocked by US sanctions, at the same time an official in parliament warned crude prices could top $100 a barrel.
The threat to close the strait, the world's busiest oil transit chokepoint, was also made April 22 when the US announced it would end sanctions waivers for all buyers of Iranian crude.
US President Donald Trump showed Friday he remains focused on domestic gasoline prices as he said in comments to reporters and separately in a tweet that he spoke with OPEC producers and asked them to increase supply to lower prices.
"If our oil is not to pass the Strait of Hormuz, oil of others will certainly not pass through this strait either," Mohammad Bagher, chief of staff of the armed forces, said.
Meanwhile, a member of Iran's parliament warned that oil prices will skyrocket following the decision to end the waivers. The Trump administration has announced it will end waivers on crude purchase granted to Iran's primary oil buyers in a bid to push Tehran oil sales to zero.
The waivers currently issued for China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey expire on May 2.
"Trump is struggling to win the next [presidential] elections" in 2020, Fereydoun Hasanvand, head of the parliament energy committee, said, according to iribnews.ir.
He said Washington's plans to "take over Venezuela, cause trouble in Libya, establish martial law in Sudan" are intended to boost support for US sanctions against Iran.
"Not extending the oil waivers of some countries is another side of the US measures against Iran. But if Iran's oil is fully sanctioned, oil price will go higher than $100 per barrel," Hasanvand said.
ICE June Brent settled $2.20/b lower at $72.15/b, and NYMEX June WTI crude settled $1.91/b lower at $63.30/b at Friday's close.
The 21-mile Strait of Hormuz at the mouth of the Persian Gulf handles roughly 40% of global crude trade.
"If something happens [to] commercial vessels and oil tankers, the US will be obliged to respond to the questions of the Islamic Revolution Guards Corps., which is in charge of security in the Strait of Hormuz," Bagheri said.
He also stressed that Iran will not initiate any move to escalate the tension between Washington and Tehran.
"Of course, this doesn't mean shutting down the Strait of Hormuz and we don't have the intention to close the Strait of Hormuz. Unless the enemy or enemies push us to a limit until the day that we can close the Strait of Hormuz," Bagheri said.
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Earlier:
2019, April, 26, 11:30:00
OIL PRICE: NOT ABOVE $74 YET
Oil prices dipped on Friday on expectations that producer club OPEC will soon raise output to make up for a decline in exports from Iran following a hardening of sanctions on Tehran by the United States.
2019, April, 26, 11:25:00
OIL PRICES 2019-20: $66 - $65
Crude oil prices are expected to average $66 a barrel in 2019 and $65 a barrel in 2020,
2019, April, 24, 11:35:00
OIL PRICE: NOT ABOVE $74
Crude oil prices for spot delivery rose to 2019 highs earlier in the week after the United States said on Monday it would end all exemptions for sanctions against Iran, demanding countries halt oil imports from Tehran from May or face punitive action from Washington.
2019, April, 24, 11:25:00
OIL PRICE: OPEC + IRAN
OPEC is due to meet in June, where the Iran question will no doubt be raised. But oil and gas leaders are taking a cautious approach, with Kuwait's oil minister Khaled Al Fadhel noting that a decision would be taken only after a review of oil prices.
2019, April, 24, 11:20:00
OIL PRICE: OPEC + RUSSIA
the risk of oil prices heading well above $70/b to the oil market and the global economy, while also saying that if prices were too low it would hit investment in the industry and key oil producing countries.
2019, April, 22, 08:50:00
OPEC + RUSSIA IS HERE
"Cooperation will continue between Russia and Saudi Arabia," Ibrahim al-Muhanna said at the International Oil Summit in Paris, stressing that "it is the core of OPEC+ cooperation."
2019, April, 17, 11:35:00
OIL PRICES: TROUBLED WATERS
On BRENT ;The Bulls are still gathering through the 71.72$ price mark. A hold of the 63.45$ price mark indicates a strong bull market in the June WTI Futures market,a fall below creates a range bound trade.
