Oil Up Over 2% amid Concerns over Iran, Slower U.S. Output Growth

September 12, 2018

Oil prices rose more than 2 percent on Tuesday as Iranian crude exports suffered U.S. sanctions and after U.S. crude oil production in 2019 was forecast to grow at a slower rate than previously expected, prompting supply concerns.

Brent crude futures rose US $1.69, or 2.2%, to settle at US $79.06 a barrel. U.S. West Texas Intermediate crude rose by $1.71, or 2.5%, higher at $69.25 a barrel.

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.

To prevent pushing up oil prices, U.S. 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.

Russian Energy Minister Alexander Novak said on Tuesday that Russia and a group of allied independent producers may sign a new long-term cooperation deal at the beginning of December, the TASS news agency reported. Novak did not provide details.

(Reuters)

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