Oil prices pulled down by surging output, but Iran sanctions loom

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Secretary of State Michael Pompeo said eight governments are going to receive temporary waivers from USA sanctions on the import of Iranian crude that snap back on Monday following President Donald Trump's decision to quit the Iran nuclear agreement reached in 2015. Particularly, the sanctions will target Iran's crude oil exports and will penalize countries that don't stop importing oil and foreign companies that do business with certain Iranian entities.

Turkey, a key destination for Iranian crude, may be among countries that are getting an exemption, Energy Minister Fatih Donmez told reporters in Ankara on Friday.

Crude oil prices eased in the month of October after major oil producers like Saudi Arabia and Russian Federation agreed to increase their output it the future to make up for the deficit from Iran.

Treasury Secretary Stephen Mnuchin said 700 more Iranian companies and people would be added to the sanctions lists under the reimposed sanctions.

Iran's biggest oil customers - all in Asia - have been seeking sanctions waivers to allow them to continue buying some of its oil.

The UK, France, Germany, Russia and China were also parties to the 2015 accord and have stuck to it, saying they will set up a new payment system to maintain business with Iran and bypass U.S. sanctions.

Iran will reportedly continue doing business on SWIFT, and the U.S. administration will extend waivers to several countries allowing them to continue purchasing Iranian oil - a concession that was mulled earlier in September, sources said.

Other Asian countries such as Japan have also since halted imports from Iran before the US sanctions kick in. The Trump administration has asked that those nations also cut other economic ties with the Persian Gulf state, such as by reducing trade in goods that aren't covered by the sanctions, the official said.

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He had an assault rifle and three handguns at the time of the attack, which lasted around 20 minutes, Jones said. Earlier, US Attorney General Jeff Sessions said federal prosecutors could seek the death penalty.

Barack Obama, the USA president at the time, had argued the deal would prevent Iran from developing nuclear arms.

Goldman Sachs said it expects Iran's crude oil exports to fall to 1.15 million barrels per day (bpd) by the end of the year, down from around 2.5 million bpd in mid-2018.

"In May, President Donald Trump pulled the United States out of the 2015 landmark joint comprehensive plan of action (JCPOA) terming it as disastrous".

US light crude was 25 cents lower at $63.44, down more than 13 percent since hitting four-year highs a month ago.

The administration has said it is considering waivers on a case-by-case basis.

After the US' withdrawal from the deal, Trump signed fresh sanctions against Iran and warned countries against any cooperation with Tehran over its controversial nuclear weapons programme.

The Iran sanctions have officially been cast.

"If you cross us, our allies or our partners, if you harm our citizens, if you continue to lie, cheat and deceive, there will be hell to pay". "The message they're sending is don't screw around with these escrow accounts and try to get cute".

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