The United States impose sanctions against Iran, rebellious Tehran

NEW YORK (Reuters) – Oil prices rose on Monday after a brutal five-day drop, as the United States formally imposed punitive sanctions on Iran, while granting temporary waivers to eight countries. allowing them to continue buying oil from the Islamic Republic.

The sanctions are part of US President Donald Trump's efforts to curb Iran's missile and nuclear programs and reduce its influence in the Middle East.

Oil markets have been anticipating sanctions for months. Prices have been under pressure as major producers, notably Saudi Arabia and Russia, have increased production to levels near record levels, while weak economic statistics in China have cast doubt on oil prices. prospects of demand.

The news of price hike sanctions and the recent weakness in equity markets has fueled worries about global oil demand, said Bob Yawger, director of futures at Mizuho in New York.

"We are not getting the price rally that many participants thought they would get out of the sanctions situation against Iran," said Yawger.

Brent LCoC1 futures contracts gained 48 cents to 73.31 dollars per barrel at 13:08. EST (1808 GMT). The futures price of the CLc1 futures contract for the US West Texas Crude (WTI) rose 29 cents to 63.43 dollars per barrel.

Both oil indices have tumbled more than 15% since their record high of four years in early October. Hedge funds reduced bullish bets on crude oil to their lowest level in a year.

The United States granted exemptions to China, India, Greece, Italy, Taiwan, Japan, Turkey and South Korea, allowing them to continue temporarily to buy Iranian oil, said Monday the US Secretary of State Mike Pompeo. Some of them are the main clients of Iran, a member of OPEC.

US officials said the goal of the sanctions was to end all Iranian oil exports.

According to Pompeo, more than 20 countries have already reduced their imports of Iranian oil, cutting their purchases by more than a million barrels a day.

The sanctions have already cost Iran billions of dollars in oil revenue since May, US Special Representative for Iran Brian Hook told reporters on Monday.

Iran said on Monday it would break sanctions and continue to sell oil overseas.

The Chinese Ministry of Foreign Affairs lamented the American movement.

Combined output of Russia, the United States and Saudi Arabia surpassed 33 million bpd for the first time in October, up 10 million bpd since 2010, with all three pumps reaching record volumes or almost.

The national oil company of Abu Dhabi plans to increase its oil production capacity to 4 million bpd by the end of 2020 and 5 million bpd by 2030, said Sunday a production of just over 3 million bpd.

Data from the analysis firm Kayrros showed that Iran's crude output was broadly unchanged in October compared with September, as barrels were still sold on the market, alongside additional production in Saudi Arabia and Russia.