Oil fell sharply in late trading Thursday on news that the US is lifting sanctions on key Iranian oil industry officials, paving the way for a possible deal to lift the embargo against one of OPEC’s largest suppliers.
Brent futures in London plunged 2% in five minutes after the US Treasury announced that it was removing from the “black lists” the head of the Iranian National Oil Company, as well as two top managers of trading firms involved in trading “black gold” …
Sanctions are lifted from NOIC managing director Ahmad Galebani, as well as two Iranian natives with British passports – Farzad Bazargan and Mohammad Moini. The first is the managing director of the Hong Kong Intertrade Company, the second is the commercial director of the Naftirian Intertrade Company, according to a release from the US Treasury’s Office of Foreign Assets Control.
Immediately after the ministry’s statement, Brent futures fell to the level of $ 70.97, but won back the dip and at 20.03 Moscow time traded at $ 72.34 per barrel, adding 0.17% relative to Wednesday’s trading.
Contracts for WTI are concluded in New York at $ 70.08 per barrel, although earlier at the moment they were down $ 68.69.
While the lifting of sanctions on Iranian officials looks encouraging for Tehran, the real outlook for the Vienna talks remains unclear.
On Wednesday, the head of the Iranian presidential administration, Mahmoud Vaezi, said that despite progress, agreements on lifting the oil embargo had not yet been reached.
“We have made great progress in the area that deals with economic issues. However, there are still restrictions related to the sale of oil, ”he said.
In May, according to OPEC, Iran produced about 2.4 million barrels per day against 3.8 million before the imposition of sanctions. Production in the Islamic Republic has been steadily growing since the end of last year and has already added 500 thousand barrels per day.