Stable oil as US sanctions against Iran begin, Tehran rebels

LONDON (Reuters) – Oil prices stabilized on Monday, as US sanctions against Iranian fuel exports were eased by waivers allowing major buyers to import Iranian crude for some time, with Tehran having announced that he would defy Washington and continue to sell.

Brent crude oil LCCO1 was unchanged at $ 72.83 per barrel at 12:30 GMT. US light crude CLc1 was 15 cents lower at $ 62.99.

Both benchmark oil indexes have lost more than 15% since their record four-year high in early October as hedge funds reduced bullish crude bets to a new low in a year.

"Oil bulls have long been hedging their hopes on the Iranian factor and the lack of upside potential today will be a major concern," said Stephen Brennock, an analyst at PVM Oil.

Washington imposed sanctions on Iran on Monday, restoring the measures lifted as part of a 2015 nuclear deal negotiated by the government of former US President Barack Obama, and adding 300 new designations, including the oil sector, maritime, insurance and banking of Iran.

In response, Iranian President Hassan Rouhani said in a speech broadcast on public television that Iran would violate the sanctions and continue to sell oil.

And Washington announced Friday that it would temporarily allow eight importers to continue buying Iranian oil.

"US sanctions against Iran … sparked sharp concerns among traders earlier in September, but they are turning into a wet bighorn," said Fiona Cincotta, a market analyst at City Index.

Washington has not yet identified the eight. China, India, South Korea, Turkey, Italy, the United Arab Emirates and Japan were the main importers of Iranian oil, while Taiwan also buys Iranian crude from time to time.

South Korea announced on Monday that it had obtained a waiver, at least temporarily, to import condensate, a form of extremely light crude oil, from Iran. He was also allowed to continue financial transactions with the Middle East country, he added.

The Chinese Foreign Ministry lamented the decision made by the United States but did not say whether an exemption had been granted to China.

Oil markets have been anticipating sanctions for months, and major world producers are increasing production.

Joint production from Russia, the United States and Saudi Arabia surpassed 33 million barrels per day for the first time in October, an increase of 10 million barrels per day since 2010, the three pumps reaching record volumes or almost.

In the Middle East, the national oil company of Abu Dhabi plans to increase its oil production capacity to 4 million bpd by the end of 2020 and to 5 million bpd by the end of the year. horizon 2030, announced Sunday a production of just over 3 million bpd.