Oil steady near $71 as sanctions and protests stoke risk

by Antonio Miles May 16, 2018, 12:39
Oil steady near $71 as sanctions and protests stoke risk

"US sanctions on Iran take center stage in the oil market", said Norbert Ruecker, head of macro and commodity at Julius Baer & Co in Zurich.

Brent crude futures were at $78.22 per barrel at 0644 GMT, down 21 cents, or 0.3 percent, from their last close.

Elsewhere, supply concerns have been mounting over the last week after President Donald Trump the United States pulled out of the Iran nuclear deal - a move that reimposes sanctions on Iranian barrels. The contract hit $78.22/Bbl earlier in the session, its highest level since November 26, 2014.

The West Texas Intermediate (WTI) for June delivery was up 35 USA cents to settle at 71.31 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery rose 20 cents to close at 78.43 dollars a barrel on the London ICE Futures Exchange.

Since the accord was reached at the end of 2016, oil prices have climbed to their highest in almost four years to exceed $77 a barrel, up from $30 in early 2016.

China, France, Russia, Britain, Germany and Iran all remain in the nuclear accord that placed controls on Iran's nuclear programme and led to a relaxation of economic sanctions against Iran and companies doing business there.

Bale: Tiger Woods is the greatest of all
That, and a red-hot putter. "You have to just take what it gives you, and take you medicine when you get out of position". And when he does, that vault-like memory of his won't have to drift back to 2000, or 2008, or even 2013 for inspiration.

With renewed United States sanctions looming against OPEC-member Iran and oil demand strong, analysts said crude prices were well supported. American measures could cut the Persian Gulf nation's crude exports, and traders are watching whether OPEC and its allies will end their agreement to curb supply and increase production instead to fill in the gap.

Oil for September delivery rose 1.6% to 472.8 yuan a barrel on the Shanghai International Energy Exchange.

Yesterday, OPEC downplayed the impact of the U.S. shale boom, but warned about U.S. trade squabbles.

"We expect the EIA report to display bearish results amidst higher rig counts and production levels in the USA", said Singapore-based brokerage Phillip Futures.

The Organization of the Petroleum Exporting Countries and other large oil producers led by Russian Federation, have agreed to cut their combined oil output by 1.8 million bpd to reduce bloated global oil inventories and support prices.

On Monday, however, markets were held in check by news of an increase in US drilling for oil.


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