Drone strikes attacked an oil processing facility at Abqaiq and the nearby Khurais oil field on Saturday.Marketsread more
The trucking industry is worth hundreds of billions of dollars per year. Uber is going after this market with Uber Freight, an online platform that matches truckers with...Technologyread more
Trump said oil would be released if needed to keep the market well supplied and he would expedite the approval of pipelines in Texas and other states.Marketsread more
Saudi Aramco is aiming to restore by Monday about a third of its crude output that was disrupted after drone attacks on two key oil facilities, The Wall Street Journal...Marketsread more
Apple's new iPhones can still send texts, download apps, and make video calls, but the company spends a lot of time and effort marketing its new phones as powerful photography...Technologyread more
Some U.S. manufacturers say tariffs, if targeted, will help address longstanding unfair trade practices like intellectual property theft.Traderead more
Supporters of a $15 minimum wage ballot initiative in Florida argue the state's inflation-tied pay hikes have not gone far enough.2020 Electionsread more
Saudi Arabia shut down half its oil production Saturday after drone strikes hit the world's largest oil processing facility in an attack claimed by Yemen's Houthi rebels.Politicsread more
Trusii's hydrogen water machines were supposed to help users with their health problems, but customers claim the company is involved in a giant scam.Technologyread more
The decoupling of the world's two weightiest economies seems as inescapable as its extent and global impact remains incalculable.Politicsread more
BlackBerry has reinvented itself to become a leader in securing mobile communications and in embedded communications. Next year it plans to roll out new products. CEO John...Evolveread more
Goldman Sachs said Tuesday that while clashes in the Kurdistan region of Iraq posed a risk to oil output, intensifying geopolitical tensions between the U.S. and Iran remained a more formidable and longer-term threat to global oil supply.
After several weeks of fairly flat trade, a risk premium has returned to oil markets and boosted global prices. On Monday, Iraqi forces moved into the oil-rich province of Kirkuk — threatening oil supplies — while political tensions between the U.S. and Iran continued to reverberate.
"In the case of Iran, there are likely no immediate impacts on oil flows and there remains high uncertainty on potential reintroduction of U.S. secondary sanctions. If they are, we expect that several hundred thousand barrels of Iranian exports would be immediately at risk," analysts at Goldman Sachs said in a research note published Tuesday.
Instead, he asked lawmakers to toughen the agreement, negotiated between Iran and six world powers, by amending a U.S. law. At the same time, the U.S. administration will try to convince European leaders to impose new sanctions on Tehran and return to the negotiating table.
In the absence of support from other countries, Goldman suggested it is unlikely production would fall by 1 million barrels per day to the levels before Western sanctions were imposed on Tehran.
"In the case of Kurdistan, the 500,000 barrel-per-day (bpd) Kirkuk oil field cluster is at risk with initial reports that 350,000 bpd has shut in, although this remains unclear," Goldman analysts said.
High revenue per barrel and low production costs in the oil-rich Kirkuk province would most likely "incentivize" both sides to keep oil flowing, analysts at the U.S. investment bank added.
Iraqi forces loyal to the central government in Baghdad rapidly took over almost all of the disputed Kirkuk province on Monday, with Kurdish forces retreating to nearby oilfields. These military maneuvers in Iraq come after the country's semi-autonomous Kurdistan region voted overwhelmingly in favor of independence in a referendum last month.
While Iraqi Prime Minister Haider al-Abadi denounced the vote as unconstitutional and ordered the result to be annulled, the Erbil-based Kurdistan Regional Government defended the referendum as legitimate and pushed for dialogue with Baghdad.
"As feared, Kirkuk and the surrounding oil fields are caught in the crossfire of the dispute between Baghdad and Erbil, placing nearly half of Iraqi Kurdistan's exports in the balance," Helima Croft, global head of commodity strategy at RBC Capital Markets, said in a note.
Iraq is OPEC's second-largest oil producer. Kurdish-controlled areas of Iraq are among the most productive in the country and contain much of its energy infrastructure.
After a strong rally in the previous session, geopolitical tensions edged oil prices higher on Tuesday morning. Brent crude rose 0.6 percent to $58.16 a barrel while U.S. oil futures hovered near the $52 level in lunchtime trade.
— CNBC's Ted Kemp and Tom DiChristopher contributed to this report.