Time to freak out about oil prices?

Time to freak out about oil prices?

Iranian state television said the USA decision was "illegal, illegitimate and undermines global agreements".

Still, Iran will feel the pain from US sanctions, even without cooperation from the other worldwide partners. Such measures included sanctions targeting Iran's petroleum, petrochemical and automotive sectors and Iran's central bank.

The big question at this point is how disruptive unilateral sanctions from the USA will be to Iranian oil flows.

President Donald Trump's decision to take the US out of the Iran nuclear deal is hitting investors (and gasoline-buying Americans) where it hurts - the oil market.

The administration says the lifting of sanctions as part of the nuclear pact had allowed Iran to build up its military. In response to Trump's rant, Leader of the Islamic Revolution Ayatollah Khamenei stressed that Washington's problem with Iran has in fact nothing to do with the country's nuclear program.

Trump did not offer any new justification for how Iran was violating the nuclear accord - the IAEA confirmed on May 9 that Iran is in compliance with its nuclear commitments - and offered no Plan B or even a coherent strategy on what comes next.

The global oil market is balanced, with top exporter Saudi Arabia and No.1 producer Russian Federation having led efforts to curb oil supply to prop up prices.

The US President described the deal as "insane", but Tehran has already promised to begin "industrial scale" enrichment.

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While the left-handed Kishan holed out at mid-on while looking to clear the boundary, Suryakumar's was a soft dismissal. Evin Lewis (9 runs) and Suryakumar Yadav (27) got MI to a promising start, but the former departed in the fourth over.

President Trump's withdrawal from the multi-national deal to halt Iran's nuclear weapons ambitions has drawn little reaction from the tanker market.

Iran, which pumps about 4 percent of the world's oil, exports about 450,000 barrels per day (bpd) to Europe and around 1.8 million bpd to Asia.

Speculators are driving the momentum which is pushing WTI and Brent crude oil prices higher.

US investment bank Jefferies said in a note it expects Iranian crude oil exports to start falling in the next few months.

However, Saudi Arabia - the de-facto head of OPEC - signaled this week it could up its own production to make up for lost barrels from Iran.

Iran is India's third-largest oil supplier behind Iraq and Saudi Arabia.

Crude oil traded slightly bearish during the Asian session in response to the ruthless rise in US drilling activity pointed to increased output. Our model suggests that roughly 25% of Iranian oil exports will be curtailed over the course of a year, but far less over the next 180 days, which is the window provided by the US Treasury to comply with the sanctions.

Here are five reasons why the U.S. withdrawal from the Iran nuclear deal has had little impact on the tanker market. While Trump's withdrawal from the Iran nuclear deal might be meant to show Kim Jong Un that the US president follows through with his threats, it may also reinforce fears that Washington's negotiations can not be taken seriously - and that Pyongyang still needs its nuclear deterrent to ensure its survival.

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