Oil Prices Head Higher as Iran Export Concerns Intensify

© Reuters. Oil prices hit 2014 high on worries of Iran sanctions

Investing.com – Crude prices moved higher in midmorning trade Thursday as increased tensions over Iranian oil exports and the economic situation in Venezuela provided a backstop for the bulls.

New York-traded gained 45 cents, or about 0.6%, to $71.94 a barrel by 10:19AM ET (14:19GMT).

Meanwhile, , the benchmark for oil prices outside the U.S., traded up 66 cents, or roughly 0.8%, to $79.94 a barrel.

Both barrels hit their highest price since 2014 on Thursday, while Brent oil briefly topped the $80 mark after French energy giant Total (PA:) announced a day earlier that it would withdraw from an Iranian gas deal before the end of the year, unless it was able to obtain a waiver from secondary sanctions from the U.S. government.

U.S. crude has gained around 4% since President Donald Trump announced on May 8 that the U.S. was pulling out of the Iranian nuclear deal and re-imposing sanctions.

Market participants widely expect the move to lead to tighter global oil supplies as they make it more difficult for Iran to export oil.

Iran, which is a major Middle East oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC), resumed its role as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran’s nuclear program.

Also increasing concerns over supply, unrest was building in Venezuela ahead of presidential elections on Sunday that nations including the U.S., European Union, Mexico, Brazil or Colombia have labeled as “illegitimate”.

Production in Venezuela plunged to 1.5 million barrels last month, its lowest level in decades due to its ongoing economic crisis.

In other energy trading, rose 0.3% to $2.2601 a gallon by 10:21AM ET (14:21GMT), while advanced 1.0% to $2.2925 a gallon.

fell 0.6% to $2.798 per million British thermal units ahead of weekly inventories.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Leave a comment