The US crude stockpiles are on the fall with record exports. The oil commodity prices rose as the government exported a huge chunk of refined and crude oil products. However, the ongoing nuclear negotiations have still created ambiguity in everyone’s minds.
Talking about the rise, a 1.2% increase was noted in the prices of West Texas Intermediate (a light, sweet crude oil) to $95 per barrel after it fluctuated in a turbulent trading session on Aug 24, 2022. Further, the USA replied reply to the European Union’s latest proposal for rescuing the Iran nuclear deal framework (2015). John Kirby, the National Security Council spokesman said that while the deal is moving closer to the end, the gap remains.
However, the Iranian deal keeps throwing volatility to crude oil futures. However, the grass is a bit greener for the Asian crude buyers with Russia being anticipated to sell the crude at discounted prices. This comes as a response to the USA-led efforts for a maximum price imposition. India clarified its stance of seeking wider consent before supporting any such plans. USA officials would be visiting India for advocating the move. It is asserted that Russian crude oil buyers want to get the cheapest commodity without annoying the USA and Europe.
Meanwhile, it is anticipated that the European sanctions will be strengthened in December. The USA gasoline crack spread hit an all-time low after January when the stockpiles in the New York area saw their biggest weekly increase this year as per the government data. US gasoline crack spread is the measure of the profitability of turning crude oil into fuel.If the USA continues to export oil at this rate, then it might face an acute shortage leading to a further rise in oil prices. While the Asian countries can rely upon the Russian crude, the USA will have to reconsider its exports keeping in mind their domestic needs. This is to ensure a balance and meet both national and international demands.
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