Brent Crude Hits 2019 High on Heightened Supply Concerns

Crude prices rose to a five-month high on Tuesday. Brent crude, the international oil benchmark, rose as much as 0.8 per cent to $74.64 a barrel. West Texas Intermediate, the US marker, increased 0.7 per cent to $66.02. The moves came after the Trump administration announced the end of waivers from US sanctions granted to India, China, Japan, South Korea and Turkey, some of Iran’s largest customers. The US is now demanding that countries no longer import any oil from Iran. Oil prices jumped despite the White House insisting that it had worked with Saudi Arabia and the United Arab Emirates to ensure sufficient supply to offset the loss of Iranian exports. UBS said it expects Saudi Arabia and its allies “to cautiously react to customers need rather than preemptively ramp up production,” but noted that there is still plenty of capacity to offset a decline in Iranian exports. Financial Times

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