Friday, 4 May 2018 19:32 WIB |
Oil headed for a weekly gain amid growing expectations that U.S. President Donald Trump will withdraw from a nuclear accord with Iran, threatening crude exports from OPEC™s third-largest producer.
Futures in New York have advanced 0.7 percent this week. Iranian Foreign Minister Mohammad Javad Zarif accused the U.S. of œbullying businesses into putting off investments in the Middle East nation, days before Trump decides whether to pull out from the accord. Russia™s Foreign Ministry supported Iran™s position that the deal shouldn™t be modified. A withdrawal would reintroduce sanctions on the Islamic Republic.
Oil-price increases in recent weeks have been driven by speculation over the fate of the nuclear deal, as well as rising geopolitical tensions in other parts of the Middle East. Crude has also been bolstered by the Organization of Petroleum Exporting Countries and its allies including Russia persisting with output curbs to clear a global glut. All that has meant prices are up more than 10 percent this year even though U.S. production is booming.
West Texas Intermediate crude for June delivery rose 19 cents to $68.62 a barrel on the New York Mercantile Exchange at 12:59 p.m. in London, after gaining 0.7 percent on Thursday. Total volume traded was about 5 percent above the 100-day average.
Brent crude for July settlement was 15 cents higher at $73.77 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude was at a $5.32 premium to July WTI.
Source : Bloomberg