LONDON: Oil prices rose about $1 a barrel on Tuesday as US sanctions squeezed Iranian crude exports, tightening global supply despite efforts by Washington to get other producers to increase output.
Brent crude futures rose $1.13 to $78.50 a barrel while WTI crude gained $1.10 to $68.64 a barrel in mid afternoon trade in London.
“The impact of the US sanctions on Iran is firmly being felt,” said Tamas Varga, analyst at London brokerage PVM Oil. “The biggest worry is obviously the amount of Iranian oil that is disappearing from the market.”
Washington has told its allies to reduce imports of Iranian oil and several Asian buyers, including South Korea, Japan and India appear to be falling in line.
But the US government does not want to push up oil prices, which could depress economic activity or even trigger a slowdown in global growth.
US Energy Secretary Rick Perry met Saudi Energy Minister Khalid Al-Falih on Monday in Washington, as the Trump administration encourages big oil-producing countries to keep output high. Perry will meet with Russian Energy Minister Alexander Novak on Thursday in Moscow.
Russia, the US and Saudi Arabia are the world’s three biggest oil producers by far, meeting around a third of the world’s almost 100 million barrels per day (bpd) of daily crude consumption.
Their combined output has risen by 3.8 million bpd since September 2014, more than the peak output Iran has managed over the last three years.
Russian Energy Minister Alexander Novak said on Tuesday that Russia and a group of producers around the Middle East which dominate OPEC may sign a new long-term cooperation deal at the beginning of December, the TASS news agency reported. Novak did not provide details.
A group of OPEC and non-OPEC producers have been voluntarily withholding supplies since January 2017 to tighten markets, but with crude prices up by more than 40 percent since then and markets significantly tighter, there has been pressure on producers to raise output.
As Middle East markets tighten, Asian buyers are seeking alternative supplies, with South Korean and Japanese imports of US crude hitting a record in September.
US oil producers are seeking new buyers for crude they used to sell to China before orders slowed because of the trade disputes between Washington and Beijing.
This is one reason that the discount for US crude versus Brent has widened to around $10 per barrel, the biggest since June, traders said.
Oil adds another dollar as Iran sanctions loom
Oil adds another dollar as Iran sanctions loom
- US sanctions to target Iran oil exports from November
- Washington wants other producers to replace falling Iran exports
QatarEnergy secures offshore exploration license in Libya
RIYADH: QatarEnergy has secured a marine exploration license in Libya following the conclusion of the “Libya Bid Round,” marking its entry into the country’s energy sector.
In a statement, QatarEnergy said Libya’s National Oil Corp. announced the results of the competitive bidding process, the first licensing round held in the country since 2007.
Exploration and production rights for Block O1 were awarded to a consortium comprising QatarEnergy, which holds a 40 percent participating interest, and Italy’s Eni, the operator, with a 60 percent stake.
Commenting on the development, Qatar’s Minister of State for Energy Affairs and President and CEO of QatarEnergy, Saad Sherida Al-Kaabi, said: “We are pleased to have been awarded exploration rights in this area and are encouraged by the potential of Libya’s offshore sector and the opportunities to expand our footprint in North Africa.”
He added: “I would like to thank and congratulate the Libyan authorities on the success of this licensing round. We look forward to working closely with the Libyan authorities and Eni to ensure the successful execution of the exploration program.”
Block O1 is located in the offshore Sirte Basin and spans approximately 29,000 sq. km, with water depths reaching up to 2,000 meters.
Beyond Libya, QatarEnergy continues to expand its global presence, particularly in Asia. The company recently signed a 20-year sales and purchase agreement with Malaysia’s Petronas to supply 2 million tonnes per annum of liquefied natural gas starting in 2028.
The agreement, signed during the LNG2026 conference in Doha, represents the first long-term LNG deal between the two state-owned energy companies. QatarEnergy said the partnership reflects “continued confidence and trust between the two organizations” and underscores their shared vision for a sustainable energy future.
Al-Kaabi noted that the agreement “highlights our continued commitment to supporting Malaysia’s growing energy needs, as well as those of our customers worldwide.”
On the sidelines of the same conference, QatarEnergy also signed a memorandum of understanding with Japan’s Ministry of Economy, Trade and Industry and JERA to supply additional LNG volumes during emergencies, such as natural disasters.
