Oil prices climb ahead of US sanctions on Iran
Oil prices rose yesterday as US sanctions squeezed Iranian crude exports, tightening global supply despite efforts by Washington to get other producers to increase output.
Benchmark Brent crude oil was up 50 cents at $77.87 a barrel by 0750 GMT. US light crude was 15 cents higher at $67.69.
“The path of least resistance for oil prices, given the supply fundamentals, remains up,” Harry Tchilinguirian, oil strategist at BNP Paribas, told Reuters Global Oil Forum.
Washington has told its allies to reduce imports of Iranian oil and several Asian buyers, including South Korea, Japan and India appear to be falling in line.
But the US government does not want to push up oil prices, which could depress economic activity or even trigger a slowdown in global growth.
US Energy Secretary Rick Perry met Saudi Energy Minister Khalid al-falih on Monday in Washington, as the Trump administration encourages big oil-producing countries to keep output high. Perry will meet with Russian Energy Minister Alexander Novak on Thursday in Moscow.
SUPPLY US Energy Secretary Rick Perry met Saudi Energy Minister Khalid al-falih on Monday