Crude Rises Close to $69 as Iran Deal `Jitters' Infect Market
Published May 04, 2018 11:07AM ET
Updated May 04, 2018 11:30AM ET
Crude Rises Close to $69 as Iran Deal `Jitters' Infect Market
(Bloomberg) -- Traders are bracing for a re-imposition of U.S. sanctions on Iran that could disrupt oil exports by OPEC’s third-largest producer.
Crude futures rose as much as 0.8 percent in New York on Friday. Even though U.S. President Donald Trump has yet to announce whether he’ll pull out of the 2015 Iranian nuclear deal, American officials already are positioning for post-accord negotiations. Trump faces a May 12 deadline to opt in or out. For their part, Iranian leaders have ruled out new talks.
“It’s back to what’s been haunting the market and is going to continue as we move a day closer to May 12,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund. “The geopolitical jitters are just infecting the market.”
Crude has risen about 50 percent in the past year as OPEC and allied producers crimped a global glut and geopolitical risks multiplied in the Mideast region that’s home to almost half the world’s oil.
West Texas Intermediate crude for June delivery added 41 cents to $68.84 a barrel at 10:24 a.m. on the New York Mercantile Exchange. Total volume traded was about 6 percent below the 100-day average. Prices are up 1.1 percent this week.
Brent crude for July settlement climbed 25 cents to $73.87 on the London-based ICE Futures Europe exchange. The global benchmark crude was at a $5.17 premium to July WTI.
“This will be the main issue preoccupying the oil market, with fundamental factors such as stock levels and production data taking a back seat until this has been resolved,” said Carsten Fritsch, an analyst at Commerzbank AG (DE:CBKG) in Frankfurt.
In the U.S., record crude production has been a headwind on the price rally. A dearth of pipeline capacity in the biggest American oil field -- Permian Basin of West Texas and New Mexico -- has crushed local prices: some grades of West Texas crude are selling for almost $14 a barrel less than the U.S. benchmark, the steepest discount since July 2014.
Other oil-market news:
- Gasoline futures rose 0.7 percent to $2.1012 a gallon on Friday.
- French energy giant Total SA (PA:TOTF) plans to boost oil exploration and open more fuel stations in South Africa.
Get The News You Want
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.