Oil Prices Fall After after Iran's Nuclear Emergency Agreement with a number of signatory countries of the 2015 Iran Nuclear Treaty took place constructively in Vienna, Australia, on Sunday, July 28 2019. Photo by: Special

JAKARTA (TheInsiderStories) – Oil prices rise more than 2 percent to its value as it broke $58 level on Tuesday (07/30). West Texas Intermediate (WTI) futures on Nymex, extends its four-day winning-streak, as the sentiment remains lifted by a likely the Federal Reserves rate cut today.

It was WTI’ biggest one-day gain since July 10. While, London’ Brent settled up 1.6 percent to $64.72 per barrel compared to prior day. Otherwise, Iranian oil exports dropped in July to as low as 100,000 barrels per day, due to sanctions and rising tensions with the United States (US) and Britain, Reuters reported.

The drop in exports from Iran could deepen the impact of an OPEC-led supply-cutting pact. The Iranian crisis itself has been a double-edged sword for the market.

Iran’ move earlier in the week to hold cordial nuclear talks with the United Kingdom, Germany, France, Russia and China has been a drag on prices. If Tehran manages to strike a new nuclear deal with Presidend Donald Trump administration will create new concerns that up to 2 million barrels per day of additional crude could enter the market, negating OPEC production cuts and adding to current oversupply.

Iran’ nuclear Agreement with a number of signatory countries of the 2015 Iran Nuclear Treaty took place constructively in Vienna, Australia, on Sunday, July 28 2019. Iranian officials said Iran would continue to reduce commitments contained in nuclear agreement if European Union failed to meet clause regarding economic benefits.

The Joint Comprehensive Plan of Action (JCPA) meeting showed a decline in tensions in the Middle East. Senior spokesman Abbas Araqchi said the meeting atmosphere was constructive. “I can’t say we solved all issues. I can say there are many commitments,” he said.

The meeting discussed the escalation of tensions between Iran and EU including Stena Impero tanker arrest which was considered to violate international waters. Apart from that Iran’s violations of nuclear agreement commitments.

The countries with this nuclear agreement are Britain, Germany, France, Russia and China. All countries hope that the tension will end and cause stability in Middle East. These countries are trying to save Iranian nuclear agreement 2015 since US withdrew from agreement in May 2018.

“As we have said, we will continue to reduce our commitment to this agreement until Europe secures Iran’s interests as stipulated in the agreement,” Araqchi said.

Meanwhile, US out of nuclear agreement has long wanted Tehran to obey the agreement. US President Donald Trump is even committed to giving more severe sanctions to Iran if it does not stop with nuclear enrichment.

US involves its allies and invites them to pressure Iran to make the country powerless. Economic sanctions are set like a ban on the sale of crude oil. US also allocated the bank to ban the use of dollar as an international transaction by Tehran.

Europe considers Iran’s nuclear agreement to cause tensions between Tehran and Washington in Middle East. Besides that confrontation causes war to occur. Trump sent and added troops to the Middle East.

In addition, US also provoked by claiming to have shot down a drone recently. This incident was denied by the Iranian authorities and said it was not an Iranian drone.

Therefore, Iranian Military shot down US military’s advanced Global Hawk drone, which was accused of flying and violating territorial boundaries around Gulf of Persian area. This almost caused a reply to air strikes by US military before being canceled by Trump.

Europe has long struggled to restore this relationship by protecting trade with Iran from US economic sanctions. The effort failed, while Iran continued to produce low levels of uranium 3.67 percent exceeding the quota of 300 kilograms per year.

“All steps we are taking at the moment can still be reversed if the agreement signatories fulfill their commitments,” an Iranian official said.

US$1=Rp14.000

Written by Willy Matrona, Email: theinsiderstories@gmail.com