Oil at the highest level in two weeks after new US sanctions targeting Iran’s exports
Oil prices rose 2% today, Wednesday, to the highest level in two weeks after the United States imposed new sanctions targeting Chinese importers of Iranian oil, amid concerns about global supplies.
Brent crude futures rose 1.18 dollars to record $ 65.85 a barrel, while US West Texas Intermediate crude rose $ 1.14 to reach 62.47 dollars, and the London Stock Exchange Group data indicates that both records were closed at their highest levels since the third of April.
Today, the United States imposed new sanctions targeting Iranian oil exports, and includes a small oil refining company in China, while the administration of US President Donald Trump is seeking to intensify pressure on Tehran and reduce its oil exports to scratch.
The move coincides with the resumption of nuclear negotiations between the United States and Iran and holding talks in the Sultanate of Oman last Saturday. It is expected to hold a second round in Rome next Saturday.
The OPEC Organization for Petroleum Exporting Countries today said it had received updated plans on making more production discounts related to Iraq, Kazakhstan and other countries to compensate for the production of these countries has been agreed upon in the OPEC+coalition.
On the other hand, the Energy Information Administration said that US crude stocks rose, while gasoline stocks and distillation products decreased last week.
With the announcement of the US Treasury today imposing sanctions on one of the small independent refining companies in China on charges of involvement in buying Iranian oil worth more than one billion dollars, this is the second small independent Chinese refining company that the Trump administration imposes sanctions so far.
China is the largest importer of Iranian oil and does not recognize US sanctions. Beijing and Tehran established a commercial system mostly dependent on the Chinese yuan and a network of mediators to avoid dealing with dollars and exposure to the American regulatory authorities.
In the past, the United States has not targeted small Chinese oil refining companies, and the reasons for this are that their dealings are limited with the American financial system. The state -owned Chinese oil companies have stopped buying Iranian crude oil for fear of violating the sanctions.
