Oil price October 30: the Imposition of sanctions against Iran the main risk for investors

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The imposition of sanctions against Iran is one of the factors of uncertainty in the commodity segment, which can greatly affect the world oil market. So, the Chinese oil company China National Petroleum Corp. (CNPC) and China Petrochemical Corp. refused to supply oil from Iran in November. According to the newspaper Woll Street Journal, Bank of Kunlun, which is owned by CNPC, has informed the Iranian contractors that cease to interact with them on 4 November, when it will effect US sanctions. China imported from Iran more than 600 thousand barrels of oil per day. In fact, China joined the sanctions against Tehran.
It should be noted that the assets of oil companies traded on the stock exchanges of the USA. But China will have to look for alternative supplies from Iran, and recently it became known that the company Rosneft will be put on the Chinese market for 10 million tons a year for five years from CITIC Resources.
Now Iran as protective measures to the sanctions launched trading in deliverable futures on oil. This was reported by Iranian Bourse Irenex. According to her, in the first day of trading, has sold 280 thousand barrels of oil at an average price of $74,85 per barrel. It is noted that 20% of transactions was done in Rial, by 80% — in foreign currency. Consequently, the stock exchange sales to end customers will be able to buy oil through brokers-intermediaries and not directly from the National Iranian oil company. As a result, such measures may be an important element bypass us sanctions.
An accurate picture of oil supplies from Iran can be determined in two or three months, when will all kinds of schemes to bypass U.S. sanctions. Iran exported to the world market according to various estimates up to 3.8 million barrels of oil a day now its exports fell 3.3 million. Who will compensate the shortage of oil in the world market and whether the positive statistics on crude oil inventories in the United States affect oil prices, will show the near future.
Denis Lisitsyn,
The trader-analyst,