Indian refiners are ready to start transferring cash owed for Iranian oil as early as next week following a landmark deal to curb Tehran’s nuclear program that allows importers to shift billions of dollars back to Iran.
Introduced to help enforce price controls in the fuel-hungry 1970s, America's ban on crude-oil exports was all but forgotten when the economy boomed and imports soared. Now it is in the news again. It keeps American crude, measured by the West Texas Intermediate benchmark, around $10 below the world price (see chart).
Middle East oil exporters are locked in an increasingly fierce battle for the world’s fastest-growing markets in Asia, as producers worldwide ship more crude east to compensate for shrinking demand from the United States and Europe.
The fight for the trillion-dollar Asian oil market has ended decades of comfortable dominance for Middle East producers, who faced so little competition that refiners in Asia complained of being charged a premium of a dollar or so per barrel above what buyers in Europe or the Americas paid.
World oil production stagnated between 2005 and 2007, which given rapid growth in demand from emerging economies sent oil prices shooting up. Some observers suggested that production might never rise much above the levels seen in 2005. Among those who raised this possibility, two of the more thoughtful have changed their mind.
LONDON — Brent crude oil fell to a 5-1/2-year low of less than $57 a barrel on Tuesday as a global supply glut outweighed concerns of lost supply from Libya where battling militias have closed ports.
The North Sea oil benchmark recovered some ground later but was on track for its weakest month since the global financial crisis of 2008, and traders said the sell-off that has halved crude prices in six months showed no sign of coming to an end.
DUBAI, United Arab Emirates — A U.S. Coast Guard vessel fired in self-defence on an Iranian boat in the Persian Gulf, the Navy said Wednesday, an encounter that could exacerbate tensions between the two countries as they work to hammer out a lasting deal over Iran’s nuclear program.
TEHRAN, Iran — An Iranian newspaper says at least 500 Porsche cars have been imported by way of a Persian Gulf island that is also claimed by the United Arab Emirates.
Thursday’s report by the Javan daily quotes lawmaker Amir Khojasteh as saying it’s unclear who the importer was or why the island of Abu Musa was used as the route to bring the vehicles into Iran.
Khojasteh is demanding that Industry Minister Mahdi Ghazanfari elaborate on the case.