Brent oil rises to 4-year high ahead of Iran sanctions, traders eye more hikes

Approximately 1.5 million barrels per day of Iranian oil will effectively be out of the market on November 4 once the US sanctions kick in. (AFP)
Updated 01 October 2018

Brent oil rises to 4-year high ahead of Iran sanctions, traders eye more hikes

  • Brent was pushed up by looming sanctions against Iran, which will start targeting its oil sector from November 4
  • With oil prices soaring, there are concerns over their inflationary effect on demand growth

SINGAPORE: Brent crude oil prices rose to their highest since November 2014 on Monday ahead of US sanctions against Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), that kick in next month.
Benchmark Brent crude oil futures rose to as much as $83.27 a barrel and were at $83.21 at 0339 GMT, up 48 cents, or 0.6 percent from their last close.
US West Texas Intermediate (WTI) crude futures were up 32 cents, or 0.4 percent, at $73.57 a barrel.
WTI prices were supported by a report on Friday of a stagnant rig count in the United States, which points to a slowdown in US crude production, which now rivals top producers Russia and Saudi Arabia.
Brent was pushed up by looming sanctions against Iran, which will start targeting its oil sector from November 4.
ANZ bank said on Monday that “the market is eyeing oil prices at $100 per barrel.”
In a sign that the financial market is positioning itself for further price rises, hedge funds increased their bullish wagers on US crude in the week to Sept. 25, data from the US Commodity Futures Trading Commission (CFTC) showed on Friday, increasing futures and options positions in New York and London by 3,728 contracts to 346,566 during the period.
In a further sign of the impact that the US sanctions on Iran will have on the market, China’s Sinopec said it is halving loadings of Iranian crude oil this month. China is the biggest buyer of Iranian oil.
“If Chinese refiners do comply with US sanctions more fully than expected, then the market balance is likely to tighten even more aggressively,” Edward Bell, commodity analyst at Emirates NBD bank wrote in a note published on Sunday.
“We’re going to find out very soon as approximately 1.5 million barrels (per day) of Iranian oil is effectively going offline on Nov. 4. If the market senses that Saudi Arabia capacity is tapped out at 10.5 million bpd ... oil prices will rocket higher with the flashy $100 per barrel price tag indeed a reasonable sounding target,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore..
With oil prices soaring, there are concerns over their inflationary effect on demand growth, especially in Asia’s emerging markets where weakening currencies are further adding to high fuel import costs.
Add the trade disputes between the US and other major powers, especially China, and economic growth into 2019 could be eroded.
Growth in China’s manufacturing sector already sputtered in September as both external and domestic demand weakened, two surveys showed on Sunday.
In Japan, business confidence among big manufacturers declined in the last quarter its lowest in nearly a year, as firms felt the pinch from rising raw material costs and as global trade conditions worsened.


UAE-led research recommends low risk cancer patients delay surgery amid COVID-19 crisis

Updated 07 April 2020

UAE-led research recommends low risk cancer patients delay surgery amid COVID-19 crisis

  • Report recommends each case still be considered for their individual needs
  • Low risk patients might be asked to consider delaying surgery

DUBAI: A global team of cancer treatment specialists, led by an Emirati physician, has published the first international medical recommendations for treating cancer patients during the coronavirus, COVID-19, pandemic, which in some cases suggests surgery should be delayed, UAE state news agency WAM reported.

Led by Humaid Al-Shamsi, consultant of oncology and cancer diseases, and associate professor at the University of Sharjah and President of the Emirates Cancer Society, the study was funded by the Khalifa bin Zayed Al Nahyan Foundation and Roche.

Mohammed Haji Al Khouri, director-general of the Khalifa bin Zayed Al Nahyan Foundation, said supporting scientific research, especially during the current crisis, is one of the Foundation’s priorities.

“We have seen the dangers that cancer patients across the world are facing during the current coronavirus pandemic, as well as the absence of any international recommendations for treating them during the crisis,” Al Khouri  said.

“That is why we decided to bring together international experts to make recommendations as soon as possible, to establish a global reference for all cancer therapists.”

The study concluded that each case should be considered on their own individual needs, but this should include postponing surgery or chemotherapy for low risk patients, as well as minimizing outpatient visits.

Healthcare company, Roche, renewed its commitment to supporting scientific research and commended the determination shown by researchers, doctors and international pharmaceutical companies to curb COVID-19.