- U.S. WTI crude oil climbs above $70/bbl for the first time since May after the U.S. State Department says buyers of Iranian oil must wind down those purchases by November or risk sanctions; WTI +3.5% at $70.50/bbl, Brent +2.2% at $76.39/bbl.
- The Trump administration has not yet held talks with China, India or Turkey about their purchases of Iranian crude, but it intends to pressure them to entirely cut their imports under threat of sanctions, says a senior State Department official.
- Buyers of Iranian crude had expected the U.S. would allow them time to reduce oil imports over a much longer period by issuing sanctions waivers if significant efforts were made to cut their purchases, based on previous comments from Trump administration officials as well as the Obama administration’s earlier decision to wean the world off Iranian oil over several years.
- Also supporting crude prices today are uncertainty over Libyan crude exports and doubts over OPEC’s ability to increase production quickly enough to prevent a shortfall in global supplies.
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, UBRT, ERYY, DBRT, ERGF, OILD, OILU, USAI
- Now read: OPEC Sends Oil Higher
Original article