Every extra dollar on the price of a barrel of crude costs US consumers roughly $3 billion a year, assuming refining margins and fuel taxes remain constant, and ignoring gasoline consumption by businesses and the like.
"As Libyan port closures remove about three-quarters of their 1 million barrel-per-day exports, crude is pushing higher again today", he said.
Those levels are lower than the record-high in April and the still-high exports in May-the month in which U.S. President Donald Trump withdrew from the nuclear deal and announced fresh sanctions on Iran.
Iran's OPEC governor Hossein Kazempour Ardebili said the USA ban amounted to "self harm", adding that Iran's position is that oil should not be used as a weapon or for political purposes.
On Tuesday, Morgan Stanley raised its Brent forecast to US$85 per barrel, from US$77.5, citing concerns that the United States may succeed in blocking much of Iran's 2.7 million barrels per day. His latest was a reminder that the United States defends many OPEC members for "very little" money.
Despite that key member Saudi Arabia is affirming that the group and its allies will boost output, Goldman Sachs Group Inc. warned that oil is likely to lead a new rally as the market faces significant supply risks from Venezuela to Iran. This must be a two way street.
Hossein Kzempour Ardebili said in the wake of Trump's latest criticism of OPEC that the president's tweets "have driven the prices up by at least $10 per barrel". Analysts had expected a drawdown of 4.4 million barrels.
Matthew Smith, the director of commodity research at ClipperData, told UPI that oil prices so far this week are moving on one hand on OPEC pledges of more production, but correcting later on fears of supply-side strains.
Considering that the U.S.is pushing for "zero" Iranian oil exports and is pressing other countries to stop importing Iran's oil, Tehran may not have many countries left to trade with.
Trump has repeatedly called on the oil cartel to reduce prices. And yet, you are asking them to reduce the prices?!
"A key driver of the rise in prices has been the OPEC-Russia deal to cut oil output, compounded by collapsing Venezuelan production and the U.S. decision to end the Iran deal", National Australia Bank (NAB) said in its July outlook.