Oil strong as decision on Iran looms

OIL PRICES rose on Friday but stayed below recent highs as global supplies remained tight and the market awaited news from Washington on possible new US sanctions against Iran.

Brent crude oil was up 10 cents at $73.72 a barrel. US light crude was 15 cents higher at $68.58.

“The energy complex is entering a consolidation phase as a wait-and-see approach takes hold ahead of next week’s Iranian sanctions waiver deadline,” said Stephen Brennock, analyst at London brokerage PVM Oil Associates.

“Expectations that the United States will pull out of the (Iran nuclear) deal and refrain from extending sanctions relief are keeping both crude markers near three-year peaks,” he added.

ANZ analysts Daniel Hynes and Soni Kumari said Brent could reach $80 a barrel by the end of this year, attributing recent strength to rising geopolitical risks and tighter global supply.

“We expect the market to tighten even further in second half 2018,” they wrote in a note to clients.

Investors are concerned that sanctions against Iran could cut oil supplies.

Iran’s foreign minister said on Thursday that US demands to change its 2015 nuclear agreement with world powers were unacceptable as a deadline set by President Donald Trump for Europeans to “fix” the deal loomed.