CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Oil surges as US calls on companies to cut Iranian imports altogether

07:12 27 June 2018

Summary:

  • The US State Department says companies buying Iranian crude oil must cut those imports altogether by November
  • NZ dollar declines despite a higher than forecast trade surplus
  • Chinese President Xi Jinping warns provinces, ministers to be prepared for a full-blown trade war

Oil prices jumped yesterday after the US State Department called on companies which buy Iranian crude oil to completely cut those imports by November or they would face powerful sanctions. According to a message from the US official the Trump administration has yet to hold talks with China, India or Turkey with regard to their purchases of Iranian oil. Crude prices increased substantially as it puts 2 million barrels, Iran exports every day, at stake suggesting the entire market would face a deficit at the end of the year. Notice that the deadline when all companies need to stop purchasing Iranian crude oil comes from the 180-day period given foreign companies to wind down their business with Iranian counterparts after President Donald Trump withdrew the US from the Iran nuclear accord in May.

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

The move taken by the State Department is a clear signal that Donald Trump is not going to go the same route as his predecessor Barack Obama allowing countries to gradually phase out Iranian crude exports over many months. Finally, the news came at a time when the OPEC/non-OPEC meeting in Vienna last month resulted in additional 700kbpd (on a net basis) whereas the whole market is regarded as roughly balanced (the OPEC shares a view that a rising demand should be enough to absorb additional supply). Moreover, crude prices were also notably buttressed yesterday evening by the API release producing a gargantuan decline of stockpiles of 9.2 million barrels. As of 6:45 am BST on Wednesday both major grades of crude are rising 0.3% each.

link do file download linkWTI prices are continuing to increase in the morning after breaking a key technical level of $69.4. As a result, one may suspect bulls could take a stab at moving toward this year’s high placed a notch below $73. Overall, the outlook for crude oil seems to be mixed, on balance, sellers could struggle to take the price meaningfully lower. Source: xStation5

As far as currencies are concerned one need to put emphasis on the NZ dollar being down as much as 0.6% in early trading on Wednesday. It comes despite a May trade surplus totalled 294 million NZD easily exceeding the median estimate placed at 100 million NZD. When it comes to the 12 months year to date approach there was a 3598 million NZD deficit while economists had expected yet deeper shortage. Together with the NZ dollar one may identify that other commodity-related currencies such as CAD or AUD are also underperforming while the Japanese yen is catching a bid once again, not a huge change though.

link do file download linkThe NZ dollar seems to be on the verge of a deeper slide as the price is hovering at around a crucial technical support line. Notice that the RBNZ meeting taking place later today might be a source of uncertainty, and this is especially true when we take into consideration the yesterday’s remarks regarding the NZD being at ’elevated levels’. That said, risks seem to be tilted slightly to the upside given the recent slump we’ve seen. Source: xStation5

Last but not least, Chinese President Xi Jinping warned yesterday provinces and ministers to be prepared for a full-scale trade war. He expects it is rather inevitable the US will impose tariffs on $34 billion worth of Chinese goods on 6 July, and already suggests China will respond to these measures accordingly. Xi points out that trade concerns might push the yuan lower against the US dollar in the short term, this is something US President Donald Trump is not fond of. He said that the PBoC will also refrain from increasing holding of US Treasuries, and in fact it will seek to reduce them appropriately.

Disclaimer

This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

Back
Xtb logo

Join over 1 Million investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
adobe_unique_id cc 1 March 2025
test_cookie cc 1 March 2024
SESSID cc 9 September 2022
__hssc cc 1 March 2024
__cf_bm cc 1 March 2024
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-22576382-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
AnalyticsSyncHistory cc 8 October 2022
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
__hstc cc 28 August 2024
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
muc_ads cc 7 September 2024
lang
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 28 August 2024

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id cc 7 September 2024
UserMatchHistory cc 8 October 2022
bcookie cc 8 September 2023
lidc cc 9 September 2022
lang
bscookie cc 8 September 2023
li_gc cc 7 March 2023

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language