Oil Prices Surge To Highest Since 2014 Amid US-Iran Tensions

Dwayne Harmon
May 8, 2018

"It seems that the bureaucratic wheels are turning in Washington to prepare for a sanctions snapback", RBC Capital Markets analyst Helima Croft said in a note, adding that "the extraterritorial nature of USA sanctions, which cover energy, shipbuilding, finance, trade, insurance, etc., means that.Iran's oil exports could credibly be curtailed by 200,000-300,000 bpd".

U.S. West Texas Intermediate crude futures were up 18 cents at $67.43, off a session high of $67.85. Eastern Time. The Dow Jones industrial average gained 187 points, or 0.8 percent, to 24,450.

Rising inventories are partly due to soaring USA production C-OUT-T-EIA, which jumped by a quarter in the last two years to 10.6 million bpd.

The United States has questioned Iran's sincerity in implementing the nuclear curbs and President Donald Trump has threatened to reimpose sanctions if adjustments are not made to the agreement.

Iranian Oil Minister Bijan Namdar Zanganeh claimed that the ongoing rise in oil prices the result of "manufactured tensions", adding however that Tehran does not advocate the current price hike and instead supports "reasonable prices", according to the Ministry's news agency SHANA.

"If Trump abandons the deal, he risks a spike in global oil prices", said Ole Hansen, head of commodity strategy at Saxo Bank, adding that reintroducing USA sanctions could remove 300,000-500,000 bpd of Iranian oil from global supplies.

Oil prices face a day of reckoning as the USA decides whether it will remain in the Iranian nuclear accord, and the realization is that due to underinvestment in oil it might be hard to replace Iranian oil if it is taken off the market.

Fitbit quick replies and women's health tracking now available
The list of partners includes excom, Diplomat Pharmacy Inc., Fitabase , Go365, Limeade , One Drop , Sickweather and Walgreens . There, you can see where you are in your cycle, when your next period is expected and check your estimated fertile windows.


Bombing in Afghan mosque kills at least 12, wounds dozens
During clashes on Friday, two civilians were killed and four were injured when a mortar shell hit a home in the Andar district. KEC is one of the largest Indian companies in Afghanistan that is responsible for electricity supply in the country.


"Avengers: Infinity War" Continues to Dominate
The Marvel movie is still riding high on great reviews and its "A" CinemaScore , and the final figures definitely show that. The superhero blockbuster has a relatively clear run until the release of 20th Century Fox's " Deadpool 2 " on May 18.


But Shum said the impact is unlikely to be as severe as the multinational sanctions imposed on Iran in 2012.

"Oil prices have run well ahead of energy stocks this year, but this trend has started to turn", Richard Turnill, BlackRock's global chief investment strategist, wrote in his latest market commentary.

Yuan-denominated futures for September delivery rose 2.9 percent to 460 yuan (US$72.27) per barrel on the Shanghai International Energy Exchange. Monday was the first time since November 2014 that WTI had climbed above $70 per barrel.

Measured against a basket of currencies, the dollar index was 0.3 percent stronger at 92.811, not far from the 92.9 it hit on Friday - its highest since December.

Trump, while refusing to disclose what he'll do by May 12, repeated his opinion that the existing accord is "a awful agreement for the United States".

Saudi Arabian energy minister Khalid al-Falih said he was concerned about possible shortages of spare crude production capacity.

Meanwhile, the US' European allies continue to back the deal, saying it has been essential to reining in Iran's nuclear program. Since sanctions were eased as of January 2016, Iran's crude production has nearly doubled and its exports soared last month to record levels.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER