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Oil Prices Continue to Be Supported by Iran Sanctions, Venezuela Disruption

Published 2018-04-26, 10:30 a/m
© Reuters.  Speculation over renewed sanctions on Iran and continued disruptions in Venezuela support oil
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Investing.com - Oil prices continued its move higher on Thursday, triggered by an expectation that the U.S. will re-impose sanctions against Iran and concerns about supply disruptions in key oil-producing nations.

New York-traded West Texas Intermediate crude futures rose 12 cents, or about 0.1%, to $68.17 a barrel by 10:28AM ET (14:28GMT).

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., traded down 47 cents, or roughly 0.6%, to $74.47 a barrel.

French President Emmanuel Macron said on Wednesday during a state visit to the U.S. that he expected Trump to reinstate sanctions against Iran, a major oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC).

The Trump administration has until May 12 to decide whether it will extend the sanctions waiver linked to Iran’s nuclear deal, which would likely result in a reduction of its oil exports.

Another bullish factor supporting oil prices has been declining output in Venezuela, OPEC's biggest producer in Latin America.

Venezuela's crude production has fallen from almost 2.5 million barrels per day (bpd) in early 2016 to around 1.5 million bpd due to political and economic turmoil.

In other energy trading, gasoline futures rose 0.4% to $2.0980 a gallon by 10:29AM ET (14:29GMT), while heating oil gained 1.0% to $2.1574 a gallon.

Natural gas futures rose 0.6% to $2.825 per million British thermal units ahead of weekly inventories.

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