US exemptions on Iran Oil Exports may shrink!
Market News
– After the previous shortlist announced by the US exempting 8 countries from sanctions on Iran Oil Exports, now experts believe that this figure could be reduced for the next time as the closing date approaches. Speculations have that only 4 nations including China, India, Turkey and South Korea may be exempted from buying Iranian oil as the US fails on zeroing oil exports of the nation. This will keep Iran oil exports above 1 mn barrels per day and Italy, Taiwan and Greece would no longer have access to Iran oil.
– Latest production data published by the ministry of industries and mines boldly show that Chinese auto manufacturers are subjecting their productions to a sizeable reduction and if the trend continues soon they leave the Iranian auto market as well. Some Chinese auto models have not been produced over the last month and this only have three reasons:
- The complexity of importing auto parts from the outside world;
- The weakness of Iran to domesticate the Chinese models’ production; and
- A change of heart in Chinese auto manufacturers with regards to their policy for Iran;
– Parliament members obliged the administration to offer 6 mn barrels of heavy/light crude and gas condensates each month on Iran Energy Exchange. After some unsuccessful and a couple successful offerings on IRENEX now the senators are to compensate for less than expected exports of oil due to US sanctions using the exchange solution. These offers can be settled fully in Iranian Rial of foreign currencies and Majlis energy commission will oversight everything with quarterly reports.
In the Market
Stocks fell for the second consecutive day on today’s session as the capital market suffers greatly from lack of fresh funds. TEDPIX (-0.61%) entered the 156K channel and surprised investors in large. It seems that this technical support level will be lost as well and equities are to see darker days until the year-end. IFEX (-0.57%) performed poorly today with a record low trading volume and value.
What is obvious in the market is the fact that the retail side’s participation dropped greatly and stands at its lowest since TSE hay days. This is while the situation over parallel investment markets are not helping the matter at all and small but steady rise of FX rates and gold coin prices made things super interesting there. The gold-backed ETF of Lotus Parsian IB jumped for almost 3% today while the price of Bahar Azadi coins stood at IRR 46,000,000 bn a piece.
Despite a tiny cash injection from the retail side just the other day, experts see no bright future for equities in the coming days. It seems that the rising political tensions along with the real effects of US sanctions are now hitting Iranian Economy more than ever and officials statements have no sign of hope after all. This is so strong that not even the better than expected stats of petrochemical exports help investors decide to sell their holding in lower prices that they should.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
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