Really scaring

WASH­ING­TON—The U.S. ex­pects all coun­tries to cut oil im­ports from Iran to “zero” by Nov. 4 or risk sanc­tions, a se­nior U.S. State De­part­ment of­fi­cial said on Tues­day, ex­press­ing a tough­en­ing of the Trump ad­min­is­tra­tion’s Iran pol­icy as Wash­ing­ton tries to po­lit­i­cally and eco­nom­i­cally iso­late Tehran.

www.wsj.com/articles/u-s-signals-zero-tolerance-on-future-iran-oil-exports-1530028859

OPEC agreement: advantage Saudi Arabia

The OPEC agreement on higher oil production will mainly benefit to Saudi Arabia which will gain market share on the oil market. The increase in oil production is global and there is no distribution by country. Saudi Arabia can easily increase its production but Iran will not be able to increase it (sanctions) and Venezuela is in a terrible mayhem and its production is trending downward.

In other words, Saudi Arabia and the US are the winners of this agreement.

Read more here

www.bloomberg.com/view/articles/2018-06-22/trump-and-saudis-win-big-in-opec-deal

Oil Ministers Back Raising Output Despite Iran’s Walk Out – Bloomberg

OPEC and its allies reached a preliminary agreement in the face of strong opposition from Iran to boost production by a theoretical 1 million barrels a day — the actual increase will be smaller as several countries are unable to raise output.

In a night of drama in Vienna, the Joint Ministerial Monitoring Committee, which recommends policy to the group, reached an agreement despite Bijan Zanganeh, the Iranian oil minister, walking out of the meeting and predicting OPEC won’t reach a final deal when it meets formally on Friday

Continue reading www.bloomberg.com/news/articles/2018-06-21/opec-ministers-back-raising-oil-output-despite-iran-s-objection

Italy, Oil – My Monday column

Judging by the Italian president Sergio Mattarella’s (justified) refusal to approve a government that would have been dominated by the League with its aversion to Europe and its institutions, the forthcoming parliamentary elections in Italy will focus on the euro and Italy’s membership of the euro area.

The worrying point here is that the Italian population is no longer in favor of the euro, as shown by the latest European Commission Eurobarometer survey (October 2017), when 40% of Italians said that the euro is a bad thing for the country as compared to 25% of the population in the euro area as a whole, and also in France. Meanwhile, only 45% of Italians think that the euro is a good thing for the country vs. 64% on average in the euro area and France. The European question played a major role in the French electoral campaign in spring 2017, but we can see that the European aspect of the Italian elections was driven by different considerations. Close to half of Italians are skeptical on the usefulness of the single European currency, and herein lies the real difference. Continue reading