Oil price up as Iran sanc­tions kick in

Yorkshire Post - Business - - BUSINESS / MARKET REPORT -

Oil prices re­cov­ered some ground on Mon­day af­ter five days of heavy losses as the United States im­posed a range of puni­tive sanc­tions on Iran, aim­ing to curb ex­ports by the Is­lamic Re­pub­lic, in­clud­ing its sales of fuel.

The move is part of a wider ef­fort by US Pres­i­dent Don­ald Trump to curb Iran’s mis­sile and nu­clear pro­grammes and di­min­ish its in­flu­ence in the Mid­dle East.

Iran said it would con­tinue to sell oil abroad.

Bench­mark Brent crude oil was up 80 cents a bar­rel at $73.63. US light crude was 50 cents higher at $63.64.

Both oil bench­marks have lost more than 15 per cent since hit­ting four-year highs in early Oc­to­ber, as hedge funds have cut bullish bets on crude to a one-year low.

Oil mar­kets have been an­tic­i­pat­ing the sanc­tions for months and the world’s big­gest pro­duc­ers have been in­creas­ing out­put.

Joint out­put from Rus­sia, the United States and Saudi Ara­bia rose above 33 mil­lion bpd for the first time in Oc­to­ber, up 10 mil­lion bpd since 2010, with all three pump­ing at or near record vol­umes.

In the Mid­dle East, the Abu Dhabi Na­tional Oil Co plans to in­crease its oil pro­duc­tion ca­pac­ity to 4 mil­lion bpd by the end of 2020 and to 5 mil­lion bpd by 2030, it said, from out­put of just over 3 mil­lion bpd.

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