Oil prices increased by over 3% in recent time—past highs which not observed since November 2018—following reports that Washington is planning to declare that all purchasers of Iranian oil would have to stop imports, or be subject to the U.S. sanctions. The Brent crude futures increased by over 3% to $74 per barrel during Asia hours, while, the U.S. crude futures increased almost 2.33% to $65.49 per barrel. That price hike followed a statement by the Washington Post, citing two officers of Department of State, that Mike Pompeo—the U.S. Secretary of State—would declare that “from May 2, the Department of State will no more allow sanctions waivers to any nation that is presently importing Iranian condensate or crude.”
The prices of Brent have increased by over 3% this year, while the U.S. crude have surged over 40%. The U.S. re-enforced permits in November on exports of Iran’s oil following the U.S. President Donald Trump one-sidedly exited out of a 2015 nuclear contract amid Iran and six countries. Daryl Liew—Head of Portfolio Management at Reyl Singapore (financial services company)—said, “The sanctions are clearly one of the main movers, I feel, which is changing prices.” He also pointed out stronger-than-anticipated economic development data from China in the last week, which can be driving stipulate expectations.
Speaking of the oil market, recently, ConocoPhillips exited from the U.K. oil and gas production in a massive $2.7 Billion North Sea deal. Reportedly, ConocoPhillips publicized that it has struck a contract to sell its UK oil and gas operations for $2.7 Billion, setting up its departure from the North Sea. The American MNC will sell its ConocoPhillips UK subsidiaries for huge $2.675 Billion to Chrysaor E&P, a firm focused on producing natural gas and oil from the North Sea. This transaction is anticipated to finish in the second half of 2019.
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