Market News & Analysis

Oil prices soar on Iranian export crackdown

Apr 23, 2019 | Market Update

High-impact economic news:

15:00 JPY BOJ Core CPI y/y
22:30 CAD Wholesale Sales m/m
23:00 USD HPI m/m

00:00 EUR Consumer Confidence
00:00 USD New Home Sales

West Texas Intermediate (WTI) crude has rallied to its highest level since October 31 following a crackdown on Iranian oil exports. Overnight, the United States announced it would stop approving sanctions waivers for countries currently importing oil from Iran, tightening oil supplies further.

United States President Donald Trump confirmed the announcement on Twitter, saying, “Saudi Arabia and others in OPEC will more than make up the oil flow difference in our now Full Sanctions on Iranian oil…”  

With supplies set to tighten by approximately 1 million barrels per day, the price of WTI and Brent skyrocketed. WTI crude rose US$1.19 or about 3% to close the session at US$65.65 per barrel. U.K. Brent oil experienced a stronger rally, climbing US$1.63 to US$73.60 per barrel, it’s highest level since November 1.

Some of Iran’s biggest oil buyers include China, India, Japan and Turkey.

In Forex markets, the USD has edged higher in thin trade after the Easter long-weekend.

 

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