Ahead of an Opec+ meeting on Sunday, where experts anticipate the group will not undo existing voluntary curbs, and after the United States announced sanctions targeting Iran’s oil income stream, oil prices increased $1 per barrel on Tuesday. At 1700 GMT, or 1:00 PM EDT, Brent crude was up $1.08, or 1.58%, at $69.23 a barrel.
The price of US West Texas Intermediate crude was $65.71 per barrel, up $1.70 or 2.66%. Because Monday was US Labor Day, WTI futures did not settle. On Tuesday, the US Treasury Department imposed sanctions on a group of shipping firms and ships connected to an Iraqi-Kittitian entrepreneur for smuggling Iranian oil under pretenses as Iraqi oil.
Despite the halt in nuclear negotiations, the Trump administration continues to exert pressure on Iran. In June, a 12-day battle broke out, and a sixth round of the talks was halted. Prices today were undoubtedly supported by the United States’ crackdown on Iranian exports,” said Phil Flynn, senior analyst with Price Futures Group. Investors will watch a September 7 summit of eight Organization of the Petroleum Exporting Countries members and their allies.
Since Saudi Arabia and Russia were supporting the market and maintaining prices around $60 per barrel, analysts said they did not think the group would reverse the remaining voluntary cutbacks made by the eight members.
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