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in the fact that the crude oil stock volume in the US was recently reduced (Fig. 6). Normally if rising crude oil prices are expected, the storage volume increases, whereas falling crude oil prices lead to an erosion of the crude oil stock volume.
But in actual fact, the price of oil has continued to climb. This is thought to be a consequence of the US President’s actions on the stage of world trade. Despite Mr. Trump´s eruptions against the OPEC cartel price policy, the sanc- tions against Iran and Venezuela have caused a signi cant increase in oil prices. And the stipula- tion that no country in the world should import any more Iranian oil will simply continue to boost this trend.
Currently, Iran exports about 2.5 million barrels of oil every day. On November 4, 2018, the date that the grace period for Iran comes to an end, the country’s oil exports could grind to a halt with further possibly signi cant effects on oil prices to be expected. None- theless, some countries such as Turkey have stated that they will not comply with Mr. Trump´s request.
To counter possible shortages of oil in the world market, OPEC, led by Saudi Arabia, agreed to pump 1 million barrels more crude oil per day, with Riyadh agreeing to dip into its reserves “if and when nec- essary to ensure market balance and stability” – moves meant to help contain the recent rise in global energy prices.
It should be noted at this point, something we come back to later in this article, that the US shale gas industry as well as US tube producers have been quick to take
Fig. 8: Producer pipe price index as at August 11, 2017 (January 1982 = 100%) Source: US Bureau of Labor Statistics/ Federal Reserve Bank of St. Louis
Fig. 9: World steel pipe production in Ttons
Source: ITAtube Journal/Wirtschaftsvereinigung Stahlrohre e.V.
Fig. 10: World steel pipe production in Ttons (seamless) Source: ITAtube Journal/Wirtschaftsvereinigung Stahlrohre e.V.
Market information
ITAtube Journal No2/July 2018
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