Oil prices surge amid US sanctions and reduced global supply
ALBAWABA – Oil prices recorded an increase globally due to the United States (US) sanction imposed on Iran and Russia.
Increased oil prices and weak demand
Oil prices increased significantly amid the continued tight US sanctions on Iran and Russia. The International Energy Agency (IEA), a Paris-based intergovernmental organization that provides policy recommendations, analysis, and data on the global energy sector, forecasted weak global demand.
Notably, Brent crude increased to more than $70 per barrel, after a decline of about 1.5% in the prior session, while West Texas Intermediate (WTI) reached nearly $67.
US sanction on Iran and Russia
The United States (US) previously imposed multiple tight sanctions on Russia and Iran. Iran's oil minister stated earlier that sanctions had been imposed on vessels and other transportation methods, while Russia reported that payment options were significantly restricted.
Brent crude increased to more than $70 per barrel, after a decline of about 1.5% in the prior session, while West Texas Intermediate (WTI) reached nearly $67. (Shutterstock)
Moreover, The International Energy Agency (IEA), said the global demand is declining by the minute.
Daniel Hynes and Soni Kumari, analysts at ANZ Group Holdings Ltd., said: 'Looser balances in the second half of the year should see Brent crude push back toward $70 a barrel by year-end. Tariffs on Canadian crude and rising disruptions to supply from Iran and Venezuela keep the market tight.'
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