The expert predicted how it will react in oil prices on the US sanctions on Iran

© RIA Novosti / Ilya Petliurite in photobacteria oil. Archival photoThe expert predicted how it will react in oil prices on the US sanctions on Iran© RIA Novosti / Ilya Petliurite the image Bank

The price of oil due to the US sanctions against Iran, which should come into force from 5 November, will not grow above 77 dollars per barrel, experts said an energy Centre of Moscow school of management SKOLKOVO Catherine Grushovenko.

The President of the United States Donald trump announced in may that Washington is out of agreement with Iran on its nuclear program. He also reported the return of all sanctions against Iran including secondary, that is, against other countries doing business with Iran. Once again, the U.S. has enacted on August 7 some of the sanctions against Iran. The more significant sanctions that would cover oil exports, are expected on 5 November. Washington has said it aims to bring Iranian oil exports down to zero and urged its customers to abandon such purchases.

According to the expert, Iran’s oil exports according to different sources has decreased by 800 thousand barrels per day from may 2018. Iranian oil refused to Korea and Japan, as well as refinery owned by Indian Reliance. In addition, European consumers are also gradually abandoned the import from Iran, reminded Grushovenko.

«Thus, the decline in supplies from Iran could cross the milestone of 1 million barrels per day. It’s not a large volume for the global market, however, Iran has often supplied at a discount, moreover, disruptions in Libya and Nigeria, as well as rapidly the production decline in Venezuela — all these factors aggravate the situation, and we see that in the beginning of the month, oil prices began to rise,» — said RIA Novosti expert.

«Due to the long weekend, the price of oil can be up to 77 dollars per barrel,» he added, Grushovenko.

The expert predicted how it will react in oil prices on the US sanctions on Iran© RIA Novosti, Infographicsrussia against Iran

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