Oil prices rise after USA renews sanctions against Iran

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Benchmark Brent crude oil futures on Tuesday were 1.5 percent higher at $74.80 a barrel. Last week's U.S. EIA crude oil inventories jumped significantly, putting downward pressure on oil prices before finding some support in the latter half of the week.

International Olympic Committee has signed a contract to buy about 6 million barrels of USA crude oil under single tender for delivery in November 2018 to January 2019, he said.

Exports to Japan also surged to a seven-month high as refiners rushed to secure as many cargoes as possible before USA sanctions are re-applied. Trading volumes in crude oil have been particularly high on days when it has sold off.

Crude prices settled slightly lower on Thursday, extending the previous session's losses as the escalating China-U.S. trade dispute casts doubt over the outlook for oil demand.

The company will receive one very large crude carrier (VLCC) of U.S. oil every month in November, December and January.

Many countries, including USA allies in Europe as well as China and India oppose the sanctions, but the U.S. government said it wants as many countries as possible to stop buying Iranian oil.

Analysts expect Iranian exports to drop by anything between 500,000 and 1 million b/d after full USA sanctions are re-imposed on November 5.

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The prices of both Brent and West Texas Intermediate (WTI) dropped by over 2.5 percent on Wednesday morning following the reported draw of crude oil inventory by U.S. Energy Information Administration.

Oil prices rose as the United States reintroduced sanctions against major crude exporter Iran, tightening global markets.

USA sanctions on Iran's energy sector are set to be re-imposed after a 180-day "wind-down period" ending on November 4.

Oil from American fields was among goods the Chinese had designated as subject to eventual tariffs on a list in June.

"As oil sanctions against Iran take effect, perhaps in combination with production problems elsewhere, maintaining global supply might be very challenging and would come at the expense of maintaining an adequate spare capacity cushion", the IEA said.

Iran is the third-largest producer among the members of the Organization of the Petroleum Exporting Countries (Opec). Gasoline stocks rose by 2.9 million barrels, compared with an estimate for a drop of 1.7 million-barrel drop. Administration officials have said they might look at requests on a case-by-case basis, while also maintaining that the goal is to cut Iranian oil imports to zero. The Ministry of Commerce said the United States decision to levy tariffs on Chinese goods is "very unreasonable", and the Asian nation will have to retaliate to protect its rightful interests and the multilateral trading system.

After two consecutive daily advances, WTI has now eroded those gains and retreated to the area of multi-day lows at shouting distance from the $68.00 mark per barrel.