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Oil rises on looming new sanctions against Iran and unstable Iraq

Oil markets climbed on Monday due to worries of possible return of U.S. sanctions against Iran, along with the Iraq conflict, at the same time an emergency at an oil rig in the US and subdued exploration boosted prices there.

Global Brent crude went up 1.1% to $57.82 this morning from the preceding settlement. Prices for crude in the U.S. were also driven by the reduction of the quantity of new rigs by companies seeking to expand output. West Texas Intermediate crude grew by 0.9% to $51.89 for a barrel.

U.S. president last week did not certify that Iran is fulfilling its obligations in terms of the accord while international inspectors find no violations.

According to the U.S. law, every 90 days the president is to certify the compliance of Iran with the agreement. It’s now up to congress to decide whether to reinstate sanctions against the Middle-Eastern republic, this must come within 60 days. Previously imposed sanctions blocked about 1 mln barrels of oil daily from international markets.

Experts said though new wave of sanctions is not expected to be of that scale, particularly because the U.S. would probably act alone, but these actions would be disruptive.

OPEC’s number two oil producer after Saudi Arabia – Iraq with its stability issue is also causing worries.

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