Crude futures were rocketing to fresh 41-month highs Wednesday, hours after US President Donald Trump announced his decision to withdraw from the 2015 multilateral Iran nuclear deal and re-impose economic sanctions against Tehran.
While the withdrawal was widely anticipated, there was a great deal of uncertainty on how, when and what kind of sanctions the US might impose against Tehran.
Going by prompt statements issued by the US Treasury and FAQs posted by the Oﬃce of Foreign Assets Control Tuesday, it seems the ducks had all been lined up in the lead-up to Trump's announcement with regard to the snap-back of sanctions against Iran.
The US sanctions against Iran and how they might impact the latter's crude exports is what the oil market participants are now zeroing in on, to gauge the resulting supply tightness in the global oil markets and the scope for crude prices to rise further.
"Secondary" sanctions against entities doing business with Iran's central bank, National Iranian Oil Company and National Iranian Tanker Company, among others, will kick in on 4 November 2018, according to OFAC.
Essentially, this is a return to the 2012-2015 sanctions era, when the US pressured buyers of Iranian crude across Asia (Europe had banned Iranian crude imports over the period) to reduce their purchases in return for a waiver of sanctions against them.
The move had removed up to 1 million b/d of Iranian crude from the global market at its height in some of the months over the four-year period.
The US will also re-impose sanctions against entities doing business with Iran's central bank.
Global oil market balances could quickly swing to increased tightness if Iranian crude supplies are disrupted again, though this is not expected to manifest until after November.
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Already, lubricant players have established their footholds here in Bangladesh, with international brands.
However, the situation is being tough as too many brands entered in this market. So, it is clear, the lubricants brands are struggling to sustain their market shares.
For this reason, we recommend an impression of “Lubricants shelf” to evaluate your brand visibility, which can a key indicator of the market shares of the existing brands.
Every retailer shop has different display shelves and the sellers place different product cans for the end-users. By nature, the sellers have the sole control of those shelves for the preferred product cans.The idea of “Lubricants shelf” may give the marketer an impression, how to penetrate in this competitive market.
The well-known lubricants brands automatically seized the product shelves because of the user demand. But for the struggling brands, this idea can be a key identifier of the business strategy to take over other brands.
The key objective of this impression of “Lubricants shelf” is to create an overview of your brand positioning in this competitive market.
A discussion on Lubricants Shelves; from the evaluation perspective, a discussion ground has been created to solely represent this trade, as well as its other stakeholders.Why “Lubricants shelf” is key to monitor engine oil market?
The lubricants shelves of the overall market have already placed more than 100 brands altogether and the number of brands is increasing day by day.
And the situation is being worsened while so many by name products are taking the different shelves of different clusters. This market has become more overstated in terms of brand names and local products.
You may argue with us; lubricants shelves have no more space to place your new brands. You might get surprised by hearing such a statement. For your information, it’s not a surprising one.
Regularly, lubricants retailers have to welcome the representatives of newly entered brands.
And, business Insiders has depicted this lubricants market as a silent trade with a lot of floating traders.
On an assumption, the annual domestic demand for lubricants oils is around 100 million litres, whereas base oil demand around 140 million litres.
However, the lack of market monitoring and the least reporting makes the lubricants trade unnoticeable to the public.
Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
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