Iran Starts Oil sales to Private Exporters to Beat US Sanctions

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U.S. commercial crude oil stockpiles in the week ending October 19 rose 6.3 million barrels week on week while total petroleum inventories dropped as much as 8 million barrels, according to data issued by the U.S. Energy Information Administration (EIA) on Wednesday.

Later, 280,000 barrels were traded in IRENEX at $74.85.

U.S. sanctions on Iran's oil sector that were lifted as part of an internationally-brokered nuclear deal with Tehran are set to go back into effect November 5 after U.S. President Donald Trump pulled the United States out of the 2015 accord in May.

However, Jahangiri insisted that US claims of Saudi oil replacing Iran's exports are a "lie" and said that oil has climbed from $30 to $80 a barrel and if the USA could stop all Iranian exports, the price would have reached $100.

It should be noted that the oil trade is controlled by the state.

EIA also forecast WTI prices to increase at a slightly slower rate, leading to a widening of the Brent-WTI spread to 9 dollars per barrel in October.

The Iranian first vice president further described Trump's decision to restore Iran sanctions as illegal, stressing that the move was against the diplomatic success that had culminated in the 2015 Iran nuclear deal or the Joint Comprehensive Plan of Action (JCPOA) - as is technically known.

The government now intends to offer oil on the energy exchange once a week, according to Fars.

Oil prices rose on Monday, supported by bounce in Asian stocks, but analysts said sentiment remains cautious after financial markets plunge last week triggered by worries of slow global growth.

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However, U.S. equities rebounded strongly on Thursday, with the Nasdaq Composite Index jumping about 3 percent in late trading, soothing anxious investors to some extent.

Other Iranian oil officials, in addition to the National Iranian Oil Co. and National Iranian Tanker Co., have recently declined to specify the Islamic Republic's daily export data. Meanwhile, Brent further increased 0.74 dollars to 77.63 USA dollars per barrel.

The U.S. reimposed other non-oil sanctions in August, but next week's tranche is expected to have the greatest economic effect. Still, U.S. crude oil futures prices lost 2.2 percent for the week, marking the third straight weekly loss.

The second round of US sanctions reimposed by president Donald Trump in May kick in on November 4.

Around 300,000 bpd of crude oil previously pumped and exported in the Kirkuk province to the Turkish port of Ceyhan have been shut in since the Iraqi federal government moved in October a year ago to take control over the oil fields in Kirkuk from Kurdish forces.

Prices were pressured as US inventories were expected to rise for a sixth straight week as other top producers Saudi Arabia and Russian Federation signaled potential output increases.

The EIA reported USA crude stockpiles rose 3.22 million barrels last week, while distillate and gasoline supplies declined.

Washington has also asked Saudi Arabia to make sure there is enough oil supply on the world market to keep prices from rising further. -China trade war are stirring demand-growth concerns.