Oil Prices Steady Amid US Sanctions Against Iran

Oil Prices Steady Amid US Sanctions Against Iran

Oil Prices Steady Amid US Sanctions Against Iran

A almost 200% jump in oil prices over the past two-plus years could soon create a "particularly hostile environment" for global investors, Citibank economists warned Monday. West Texas Intermediate, the USA benchmark for the price of oil, was up 0.14 percent to $70.80 per barrel.

Consequently, the price of Brent and WTI rose from $76.80 to $77.99 and $70.50 to $70.91 respectively in the global market.

Alongside a broader escalation in regional conflict, Citi economists argue a sustained increase in oil prices and weaker-than-anticipated global economic growth could combine to heighten the risk for financial market participants, CNBC reported. OPEC also boosted its forecast for demand this year whiling trimming its outlook for global oil production.

This followed stepped up tension in the Middle East after the opening of the United States of America's Embassy in Jerusalem, Israel. "If the complex can break above the multiyear highs set last week, the charts suggest we could see another 5-10% of upside near term".

That could eventually sideline about 1 million barrels per day from an already-tight market.

The company's revenues increased "on the back of higher crude oil prices and optimization in sales channels despite the remaining constraints in production within the OPEC+ Agreement", it said on a statement issued on Monday.

Those data added to a healthy picture of global oil production as producers pounce on higher prices.

Otunuga told Arab News that the price of oil has further room to rise this week.

The number of rigs drilling for oil in the USA rose by 10 last week to 844 rigs, the highest in more than three years. The US is the lead producer among these countries and produces 10.7 million barrels per day.

While the rising production figures are bearish clouds, "we're continuing to see the general momentum being brought forth, which has continued to point higher", said Ton Headrick, an analyst at CHS Hedging.

Supply-side concerns pushed oil prices up more than 1 percent for last week after U.S. President Donald Trump left the Iranian nuclear deal with world parties.

Capital Economics analysts said OPEC is well-positioned to offset any fall in output from Iran caused by the re-imposition of sanctions on the country.

Referring to President Donald Trump's decision to withdraw from the Iran nuclear deal, OPEC said: "So far, the impact on the global economy has been minor and negligible, but the build-up of potentially disruptive concerns has increased".

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