US sanctions have succeeded in stifling Iran's oil production and adding to the burden of the economic system

Osama Suleiman from Vienna

The trade war between the US and China has intensified after US President Donald Trump announced the introduction of a new package of tariff measures on imports into Canada. from China from September, sparking market anxiety and price closing with an increase of 3%.
The stalemate in the US-China talks after the failure of the Shanghai Round should raise fears of global economic growth, weakening demand for crude oil and disrupting markets after a previous wave of talks. optimism about the possibility of reaching an agreement putting an end to disputes. Business war.
On a weekly basis, the benchmark crude recorded losses: Brent crude lost 2.7% and US crude about 1.2% due to uncertainty around demand and continued supply American shale, while the market has benefited from the support of reduced production of OPEC +, Venezuela and Iran.
In this context, the agency "Platts" International Oil Information said that the economic sanctions imposed on Iran had succeeded in stifling production and adding to economic pressure on Tehran, recalling that US state Mike Pompeo had confirmed that Iran had exported less than 500,000 barrels of oil in June and July. .
The IAEA said in a recent report that prior to the establishment of the sanctions regime, Iran was shipping about 2.7 million barrels a day worldwide, noting that Pompeo was insisting on that the US administration put Iranian crude exports to zero.
The report pointed out that Iranian oil exported less than 300,000 barrels a day in June, compared with about 875,000 barrels a day in May and 2.5 million barrels a day in June 2018.
According to trade program data, nearly half of Iran's crude oil exports to China were shipped in June and July, citing expectations of Platts' badysis regarding Iran's exports of 400 at 450,000 barrels a day. In the second half of 2019.
"Chinese imports of Iranian oil are unlikely to increase, as major oil companies will avoid the risk of sanctions violation and prohibition of the US financial system," said Paul Sheldon, political advisor Platts Analytics.
On July 22, the United States announced sanctions against the state trading company Zhuhai Chen Rong Limited and its chief executive Lee Min Lee for violating US restrictions imposed on the Iranian oil sector.
The report promised to impose sanctions on China, especially possible actions affecting the Chinese central bank, could be difficult to impose for the United States because of the potential impact on the country. Mondial economy.
During his presence in Thailand, the US Secretary of State said that the United States would continue to impose sanctions on Iranian buyers of crude, as they would use to completely cancel Iranian exports and to remove them from the global oil supply.
The report underlined Pompeo's badertion that the current economic sanctions are very effective and will be applied everywhere and will be imposed on any company or country that continues to violate these sanctions, emphasizing the purchase of Iranian oil.
"Production in the Gulf of Mexico in the United States has already reached record levels, as advanced infrastructure has reduced production time and the cost of producing offshore oilfields in particular," the Platts report said. Energy is expected to average 1.9 million barrels a day in 2019 and two million barrels a day in 2020, compared with 1.7 million barrels a day in 2018.
According to the report, the Energy Information Administration (EIA) expects nine new projects to be operational by 2019 and three more by 2020, including that the "Colonel" pipeline is currently the largest pipeline of products. refined in the United States, serving approximately 50% of all projects. Refined Atlantic products, explaining that the pipeline begins in Houston (Texas) and ends in Linden (New Jersey).
In contrast, with regard to prices at the end of last week, oil prices rose about 3% Friday, a day after recording the largest drop in a few years due to the threat by US President Donald Trump that the United States would impose more tariffs on Chinese products.
The announcement of the new tariffs imposed by the United States on China, which should come into effect on September 1, has led to an escalation of the trade war between the two largest economies in the world. Any resulting economic slowdown could adversely affect oil demand.
Brent crude for delivery in October closed at $ 1.89, or 2.3%, at $ 61.89 per barrel, and world benchmark crude fell more than 7% during Thursday's session, the biggest drop in a day in over three years
The US WTI benchmark for September shipments rose $ 1.71, or 3.17%, to $ 55.66 a barrel after falling nearly 8% in the Thursday, the biggest loss of a day in more than four years.
The benchmark crude ended the week with losses, with Brent down 2.7% and US crude about 1.2%.
On the other hand, US energy companies this week reduced the number of drilling rigs in operation for five consecutive weeks, with most independent producers cutting back on their spending, even as major oil companies continue to operate. invest in new exploration activities.
"The oil rigs have put an end to the operation of six excavators in the week ending August 2, bringing the total number of rigs to 770, their lowest level since February," he said. Baker Hughes Energy Services said Friday in its closely monitored weekly report. 2018.
During the same week of last year, 859 oil diggers were active. This is the longest consecutive weekly decline since March, when the number of active oil rigs in the United States has declined for six consecutive weeks.