Oil trades near 7-month low as US waivers ease shortage fears

Saudi oil output capacity may be close to maxing out

Saudi oil output capacity may be close to maxing out Saudi oil output capacity may be close to maxing out

Aside from restrictions on oil imports, the administration added more than 700 individuals, entities, vessels and aircraft linked to the energy and financial sectors and other segments of Iran's economy to the USA list of sanctioned entities.

"Here we have a situation where an agreement created to stop Iran acquiring nuclear weapons has been complied with by Iran, an agreement struck in good faith, and it's been torn up by one party". Trump withdrew from the 2015 nuclear accord in May, but all of the others that signed on to the agreement - including countries belonging to the European Union - are hoping to keep the deal in place.

Hours earlier, Iran's Foreign Minister Mohammad Javad Zarif said the "bullying" restoration of oil and banking curbs was backfiring by making Washington more isolated, a reference to other world powers opposed to the initiative.

On Monday, the administration said it restored previously lifted sanctions on Iranian banking, shipping and energy. USA light crude was 50 cents higher at $63.64.

The countries allowed to keep buying oil from Iran temporarily under the sanctions include China's two biggest oil customers, China and India, Pompeo announced.

The second wave of renewed US sanctions on OPEC's third largest exporter officially started on Monday targeting Iran's energy, shipbuilding, shipping, and financial sectors. "We hope a new agreement with Iran is possible, but until Iran makes changes in the 12 ways I listed in May we will be relentless in exerting pressure on the regime". The deal saw Iran agree to limits on its nuclear programme in exchange for the lifting of sanctions.

Secretary of State Mike Pompeo confirmed in a call with reporters that the administration will grant waivers to eight "jurisdictions" when it reimposes oil and gas sanctions.

He also noted that the United States has only been isolating itself more and more from the rest of the world by imposing sanctions on Iran. "Today the enemy (the United States) is targeting our economy. the main target of sanctions is our people", Rouhani said.

"The irresponsible conduct of the United States necessitates a collective response by the global community in order to uphold the rule of law, to prevent undermining diplomacy and to protect multilateralism", Iranian UN Ambassador Gholamali Khoshroo wrote, calling for the United States to be held responsible.

Iran and the P5+1, the United Nations Security Council's five permanent members -the USA, the UK, France, Russia, and China - plus Germany, reached the Iran nuclear deal in July 2015.

The UK's trade envoy to Iran has criticised the United States on the day it reimposed sanctions on Iran.

The former CIA Director said that "specific circumstances" have warranted temporary allotments to a handful of countries, with China, India, Italy, Greece, Japan, South Korea, Taiwan, and Turkey being exempted from the sanctions.

On the supply-side, oil is in ample availability despite the sanctions against Iran as output from the world's top-three producers, Russian Federation the United States and Saudi Arabia, is rising. China's foreign ministry expressed regret at the USA move.

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