Oil Surges as Iran Tensions Fuel Supply Risk
by Bloomberg | M. Gindis, W. Kubzansky, A. Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Oil climbed to the highest since late October after US President Donald Trump amped up rhetoric over Iran, heightening investor concerns about supply disruptions in OPEC’s fourth-biggest producer and possible American intervention.
West Texas Intermediate futures rose by 2.8% to settle at $61.15 a barrel on Tuesday, reaching the highest level in over two months. Trump told reporters in Detroit that he thinks it’s a good idea if US citizens evacuate from Iran, and reiterated an earlier pledge that “help is on its way” to Iranian protesters amid the biggest challenge to the regime in the Islamic Republic since the 1979 Iranian Revolution.
Traders are closely watching the political unrest in Iran and possible American intervention, which could threaten disruption to the country’s roughly 3.3 million barrels-per-day oil production.
In a post on Truth Social, Trump urged Iranians to continue demonstrations, saying he had “cancelled all meetings” with the country’s officials. The death toll from ongoing protests may be in the thousands, activist groups said. Iran’s Defense Minister Aziz Nasirzadeh, in response to Trump, pledged to “defend the country with full force.”
Oil has gained ground in the early new year, following a run of five monthly losses spurred by expectations for a glut. The climb has come amid US intervention in Venezuela, with Washington’s capture of leader Nicolas Maduro, followed by the worsening wave of unrest in Iran. The rally caught off guard an oil market that was steeped with bearish bets.
Trump also said he would impose a 25% tariff on goods from countries “doing business” with Iran.
“Geopolitical risk is at an all-time high,” Jeff Currie, chief strategy officer of energy pathways at Carlyle, said in a Bloomberg television interview. “That’s a recipe for a spike in prices now.”
by Bloomberg | M. Gindis, W. Kubzansky, A. Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas