India’s Minister of State for Oil and Natural Gas Pradan stated at the 6th International Energy Forum Ministerial Meeting on April 2 that India and plans to jointly use their purchasing power to influence crude oil pricing. The Economic Times of India said daily that India has been raising its voice on Asian premiums. The rU.S. crude oil exporters 2017eport quoted the President of Indian Petroleum Corporation Sajif Singh as saying that China-India Petroleum Corporation has agreed in principle to find a common plan to exert influence on oil suppliers.
The retaliatory tariffs will cover US crude oil, natural gas, coal and chemicals such as propane, polyethylene and other ethylene derivatives. The impact of these measures varies from cargo to cargo. But for oil, the pain will be great.
Third, with the increase in international crude oil demand, the voice of the international community for OPEC's increase in crude oil production is getting louder. Developing countries that demand crude oil such as India believe that the current crude oil prices are too high and that oil prices should be reasonable and responsible. The United States also accused OPEC of artificially raising oil prices due to inflation concerns. The June report of the International Energy Agency believes that the world economy is feeling some pain from high oil prices.
European Union Foreign Affairs Commissioner Mogherini, the three foreign ministers of Britain, France and Germany, Hunter, Le Drian and Maas jointly condemned the US sanctions on Iran. After the United States withdrew from the Iran nuclear agreement, the European Union, Russia, and Iran continued to abide by the relevant agreements. The agreement ensures that Iran can only use nuclear energy peacefully. The US sanctions against Iran will take effect on August 7, and European companies that do business with Iran will also be punished.
The origin of all this is that the United States tore up the Iran nuclear agreement. It was also because of this incident that the price of crude oil continued to rise. However, after that, huge hidden dangers in the market and Trump’s plan have gradually emerged. With the strong sanctions imposed by Iran and Venezuela, these two major oil-producing countries will inevitably have a huge crude oil supply gap, and OPEC does not want the United States to occupy this big pie, so OPEC must increase production to supplement the lack of crude oil production here. This also means that OPEC will end its production cuts. After this information began to spread, crude oil prices began to plummet.
With the changes in the international situation, relations between Europe and the United States have entered a brief period of tensionU.S. crude oil exporters 2017. At the same time, US sanctions on Iran may lead to a reduction in crude oil exports. Constrained by the limitation of oil delivery capacity, the United States can only seek the help of major oil-producing countries to achieve a supply balance in the oil market, which gave the leaders of the United States and Russia a chance to meet.
As the situation in the US market and the rest of the world diverged, the price gap between WTI and Brent crude oil is still widening. OPEC continues to implement production cuts to help OECD countries’ crude oil inventories return to the five-year average. Declining production in Venezuela and Angola has tightened market supply faster than most analysts expected. In addition, Iran's potential decline in production due to US sanctions has also caused supply concerns. All these make Brent oil prices have a premium relative to WTI.