Jan 2, 2019, 2:39 PM
News Code: 83156492
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US sanctions on Iran disrupted oil market: Indian analyst

Tehran, Jan 2, IRNA – Economy and energy experts say that wrong moves of US President Donald Trump and his biased support for the Saudi's in Jamal Khashoggi's murder fluctuated the oil market in 2018, an Indian analyst of oil issues wrote.

In an article in the news website 'Money Control', Ravindra V Rao noted that 'Trump is a vocal critic of Iran. Hence he exited the Iran nuclear deal and imposed sanctions on Iran from November 1. But US policies under the presidency of Trump have turned quite ambiguous, unreliable and questionable. At the last moment, Trump granted waivers to eight countries to continue to buy crude oil from Iran. This dramatic reversal, of course, led to a huge sell-off in crude oil.'

The article added that the trade war between the US and China weighed on crude-oil demand and played a role in the fluctuation of the oil price.

'The murder of Saudi Arabian journalist, Jamal Khashoggi, and the following cover-up act by US president Donald Trump had huge ramifications on the crude-oil market.'

'Saudi Arabia landed in a soup. Saudi needs higher crude-oil prices to fill its coffers to finance its ongoing infrastructure projects. On the other hand, the country has to keep the US happy especially after it landed itself in the Khashoggi's controversy and amid the criticism it received from across the world and the ensuing embarrassment.'

The Indian analyst fruther wrote in his article that 'crude oil is expected to be quite volatile in 2019. Fundamentals have taken a back seat and market momentum would continue to be driven by speculation. Hence, volatility will be the name of the game for the energy market in 2019.'

'Investors are nervous about global economic growth. As a result, there is a huge sell-off in global equities. The yield curve shows signs of a looming recession in the US,' he noted.

Rising trade tensions, monetary tightening and geopolitical challenges are among the issues that might slow economic growth in 2019.

US President Donald Trump announced early May that Washington would pull out of the landmark nuclear deal between Iran and the five UNSC members plus Germany, officially known as the Joint Comprehensive Plan of Action (JCPOA), and reinstate sanctions which were lifted under the accord, a move which drew fire from other signatories to the deal.

The remaining countries have repeatedly reiterated adherence to the deal and have under different circumstances voiced willingness to do business with Iran.

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