Oil slips on profit-taking from Iran-based rally

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USA investment bank Jefferies said in a note that it expects Iranian crude oil exports to start falling in the next few months.

He also believes that "While prices are now rising on Trump's decision to reimpose sanctions on Iran, we may see some limitations to the rally as any lost volumes can be supplied by other producing nations".

UN Secretary General Antonio Guterres said he is "deeply concerned" over President Donald Trump's decision to withdraw the U.S. from the 2015 nuclear agreement with Iran, calling on all other nations to support the agreement and preserve the deal. The price of light - sweet crude oil climbed above $70 on Wednesday - but most industry analysts are not expecting global prices to spike the way they did when multilateral sanctions were imposed on Iran before the 2015 nuclear deal.

Trump's decision to pull out of the accord, known as the Joint Comprehensive Plan of Action (JCPOA), was widely expected in Europe, especially after personal visits to Washington by French President Emmanuel Macron and German Chancellor Angela Merkel. Both sides are locked in a proxy war in Yemen. And while he warned that, "America will not be held hostage to nuclear blackmail", he did not mention the Americans being held in Iran. That raised worries of a quick rise in oil prices. Brent crude oil closed on the day of that message at $74.06, compared with around $77.30 early Friday in NY.

Next OPEC meeting will be about production revival: Amrita Sen- Play Video -Fesharaki sees 1.5 million barrels of Iranian oil removed per day. That would hurt not just Iran's economy but also the dollar's liquidity, as the global oil trade undergirds the greenback, said Edward Al-Hussainy, senior analyst, global rates and currency at Columbia Threadneedle in Minneapolis. But its oil minister said on Thursday that Trump's decision to quit the pact would not affect Tehran's exports.

During the visit, India and Iran signed almost a dozen pacts, centrepiece of which was an agreement on development of Chabahar port.

A year ago, the national average for was $2.34 for a gallon of gas, according to a CNN Money report.

China's likely willingness to circumvent US sanctions is one factor that will influence Iran's decision on whether it will stick to the agreement.

Leveraging its experience, an effort by China together with Russian Federation and Europe that keeps the Iranian nuclear deal in place and thwarts USA sanctions would deliver one of the heaviest body blows to US credibility and perceptions of US power since Trump came to office in January of a year ago. His office agrees with Cotton, that the deal had several flaws, "including the fact that Iran was not required to destroy a single centrifuge and that adequate verification measures were sorely lacking".

"One thing that has changed and which I think is clearly a new development is that it seems to me that the White House administration has really pushed Saudi Arabia to do something about price and to put supply back into the market to make sure prices do not run up. before (when sanctions were last in place) Saudi Arabia was driving its own oil policy".

Boeing said it would consult with the government on what comes next.

On Tuesday, US President Donald Trump announced his decision to exit the deal.

On the other hand, this may also signal that the United States and South Korea are unified in their resolve to apply maximal pressure in the absence of absolute denuclearization.