GLOBAL OIL SUPPLY DISRUPTED AFTER US SANCTIONS

GLOBAL OIL SUPPLY DISRUPTED AFTER US SANCTIONS

Oil prices rose Wednesday after crude imports to China rose to record high on May 8. After the US sanctions against crude exporters Iran and Venezuela, the market is experiencing a tightened supply resulting is higher prices. The global oil market is expected to remain tight. The United States firstly imposed sanctions on Iran in November 2018 and wanted all countries to stop importing oil from Iran but Iran defied the sanctions and continue to export oil. Now US took a step further and imposed sanctions on all major 8 countries who will import oil from Iran. US has also imposed sanctions on Venezuelan oil exports later, that further disrupt crude supply in the global market. Crude export is expected to fall to little more than 500,000 bpd in April.

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