Oil prices rose for a second week as geopolitical tensions over the world's largest crude oil region raised fears of worsening global supplies.
Futures in New York were above $ 71 a barrel, near the highest level since November 2014, rising 2.3% this week. Israel said is conducting the biggest crackdown in Iranian military facilities in Syria for at least three decades. This created tensions after US President Donald Trump decided to abandon a 201
The recent rally of Crude was sustained by the risk of supply shortages in the energy-rich Middle East in deepening regional conflicts and while Trump maintained its restrictive stance on Iran. While Saudi Arabia said it will work with other manufacturers to mitigate the impact of a post-relocation deficiency, Goldman Sachs Group Inc. has pushed sanctions to push prices beyond its forecasts, and Bank of America Corp. said crude oil could rise to $ 100 next year
"The conflict between Israel and Iran came out of the nuclear deal immediately after the US exit, and this will remain a continuing geopolitical risk," said Kim Kwangrae, commodity analyst at Samsung Futures Inc. "Oil could reach $ 75 as the US could impose additional sanctions on Iran." He also said that OPEC member Venezuela was uncertain where production slipped in the face of political turmoil and economic collapse.
West Texas Intermediate crude for June delivery was up 7 cents at $ 71.29 a barrel on the New York Mercantile Exchange at 13:25 in Seoul. The traded total volume was around 34 percent below the 100-day average.
Brent for the July settlement fell 14 cents at 77.33 USD per barrel on the London Stock Exchange ICE Futures Europe. Prices have risen 3.3 percent this week. Global benchmark crude was trading at a premium of $ 6.10 against the July WTI.
Futures for September delivery to the Shanghai International Energy Exchange fell 1.1 percent to 471.3 yuan / barrel. The contract has risen 5.5 percent this week towards a fifth weekly advance.
See also: American oil exports Turning influence in Iran Enforcement: Goldman
While the US granted 180 Iranian crude oil buyers In order to circumvent the penalties, America faces the risk that some countries, such as China and India, the top importers of Iranian supplies, will defend themselves against the move and against the US where the demand is growing rapidly Maintained level of Iranian oil purchases.
The Chinese Ministry of Commerce stated Friday that it is committed to mutually beneficial cooperation in oil trade with Iran on the basis of commercial factors without specifying whether it would persist or hamper imports] Oil Market News:
- Gasoline futures rose 3.5 percent this week to $ 2.1869 per gallon, the largest weekly gain in about a month.
- Oil tankers are nervously waiting to see if they can continue doing business with Iran following Trump's announcement Tuesday.
– With the support of Tsuyoshi Inajima