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Oil grows due to possible reinstatement of sanctions against Iran

Prices of oil climbed today, pushed by anticipation that the U.S. will reintroduce sanctions on Iran, as well as by a fall in Venezuelan production and continuing high demand.

Brent futures added 27 cents from the last settlement, rising to 74.27 for a barrel. U.S. WTI futures grew 14 cents, reaching $68.19 per barrel.

France’s head of state Emmanuel Macron yesterday said he expected Donald Trump to withdraw from the agreement with Tehran made back in 2015, which meant that Iran puts on hold its nuclear program while western countries lift sanctions.

The U.S. President has got to come up with a decision until May 12 whether the sanctions against Iran will be reinstated, which would possibly bring down oil exports of the Middle Eastern state.

Venezuelan oil output has plunged by around 1 mln barrels a day since the beginning of 2016 to near 1.5 mln as a result of political and economic situation.

U.S. oil firm Chevron has brought back its executives from Venezuela as the company’s two workers were sent to jail after a contract row with PDVSA oil enterprise owned by the state.

Meanwhile, Asia, the globe’s leading region in terms of oil consumption, is showing high demand for crude, which together with the said factors drives oil prices higher.

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