Iran oil exports fall before US sanctions: global banking group

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"Mr Trump is trying to seriously reduce exports of Iran's oil and also ensure the price of oil does not go up, but these two can not happen together", Oil Minister Bijan Zanganeh said, according to the Iranian Students' News Agency, as quoted by Reuters.

Benchmark crude, Brent hit its highest since November 2014 at $80.94 per barrel, up $2.14 or 2.7 per cent, before easing to around $80.75 dollars.

U.S. crude inventories rose by 1.9 million barrels in the week to September 21, according to U.S. Energy Information Administration (EIA) data.

A Bloomberg report argued today that if President Trump fails to convince OPEC to increase production to make up for the lost supply from Iran, he has another card up his sleeve: the U.S. Strategic Petroleum Reserve.

Speaking at the UN General Assembly on Tuesday, Trump accused OPEC of "ripping off the rest of the world" by pushing for higher oil prices.

Several European diplomats said the SPV idea was to create a barter system, similar to one used by the Soviet Union during the Cold War, to exchange Iranian oil for European goods without money changing hands.

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The U.S. President spoke against the backdrop of rising oil price, which rose Monday to a four year-high at $81 per barrel and to $82 per barrel yesterday.

OPEC, as well as other producers of oil, are now deliberating whether or not to increase their output by 500,000 barrels per day in order to counteract the lessened supply from Iran.

The IIF said Iranian shippers were also providing generous payment terms and, in some cases, accepting euros and Chinese yuan instead of USA dollars.

The so-called "OPEC+" group, which includes producers such as Saudi Arabia and Russian Federation, met over the weekend but did not see the need to add new output. He said the cartel is focused on "more important" aspects of the oil market, like assuring the world is adequately supplied with crude. With oil prices hitting a four-year high of $82 per barrel, the U.S. leader slammed the OPEC oil cartel after Saudi Arabia and Russian Federation rejected calls to increase production amid looming United States sanctions on Iran's oil exports.

The price of oil has been steadily going up since the early months of 2017. "We believe the combination of tight supply, healthy demand, falling global inventories - down from already under-stored levels - and anemic spare capacity helps support an oil price that could end the year above 90 dollars", he said.

US officials, including President Donald Trump, are trying to reassure consumers and investors that enough supply will remain in the oil market and have pushed OPEC to raise output. In June, the group agreed to restore some of that output and return to its goal of keeping 1.8 million barrels a day off the market.

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