Light, sweet crude oil prices fell more than $1 a barrel on New York’s market on November 1, while crude oil prices for Dated Brent benchmark oil in London fell more than $2 a barrel when US sanctions on Iran were expected to be complete be implemented.
Meanwhile, US officials have agreed that eight nations – including South Korea, Japan and India – will receive exceptions that will allow them to continue buying oil from Iran after November 4, Bloomberg said.
Sara Vakhshouri, president of SVB Energy International, Washington, DC, estimated Iran’s oil production at 3.33 million barrels a day from 3.51 million barrels a day in October. It expects Iran’s total November exports to total about 1 million barrels a day to China, India, Turkey and South Korea.
“We don’t think that Russia…has a capacity to swap any oil for Iran in China…….We expect to see higher oil shipments and delivery of oil than what was permitted by US administration under the waivers,” she said.
It is expected that China will continue to be the largest buyer of oil in Iran, although the oil may be stored, which would be in line with US sanctions.
Regardless, US President Donald Trump and his cabinet officials have welcomed talks with China, but some analysts doubt that the two countries will overcome a trade crisis.
A Wall Street Journal survey of 11 investment banks revealed that Brent crude oil will reach an average of nearly $75 / barrel in 2018, while light, sweet crude oil should reach an average price of $ 68 / barrel.
The latest estimates indicate a rise of $2 for Brent benchmark and $1 for US oil futures, WTI compared to their September forecasts.