Oil prices continue to gain with America’s pledge to strangle Iran
Oil prices rose for the second day after America pledged to reduce Iran’s energy exports to zero, in a move that ignited geopolitical tensions and raised concerns about the supply.
Global measurement of Brent Mix rose above the level of $ 66 a barrel, after 2% rose yesterday, Wednesday, putting the contracts in the course of its first weekly gain this month. As for the American West Texas, it traded nearly $ 63 a barrel.
By 14:00 GMT, Brent crude futures for June delivery were 1.47% to $ 66.83 a barrel, while West Texas Crude futures increased 1.76% to $ 63.57 a barrel.
US Treasury Secretary Scott Payette said that his country would apply the utmost pressure to disrupt the Iranian oil supply chain, following the imposition of sanctions on a second Chinese refinery accused of dealing with Iran’s oil.
She explained that “Shandong Xing Sheng Limited”, which is a small and independent refinery known as what is called “Tea Create Manters”, dealt with more than one billion dollars in Iranian crude, in violation of the sanctions, in return, Tehran warned that nuclear talks arising with Washington may collapse if the Trump administration decides to “change its path”.
The impact of the sanctions is limited and the alternative supply chains are expanding
Despite the American escalation, experts believe that the impact of these sanctions may be limited, and Brian Leisen, chief oil analyst at RPC Capital Markets: said that Iran and China have created supply chains and payment mechanisms outside the international financial system, “which reduces the possibility of major disturbances.”
The recovery came this week, supported by US government data that showed a decrease in stocks in Kushing, Oklahoma, a “Texas” raw point of delivery, by 650 thousand barrels, to reach its lowest levels for this time of year since 2008.
Nevertheless, price gains are still shy compared to a previous decline exceeding $ 10 a barrel earlier in the month, when futures fell to their lowest level in 4 years as a result of the “chaotic” customs duties decisions of US President Donald Trump, which raised concerns about the growth of the global economy and energy demand.
The OPEC+coalition continues its endeavors to push member states to reduce production and compliance with the specified shares, but the data shows that Iraq and Russia have made limited progress while the accumulated inventory of Kazakhstan, which is historically known for its lack of commitment to the shares, increased by 40%, and it is expected that trading on oil futures will stop tomorrow, Friday, due to an official holiday in many countries.
