Oil Prices Climb More than 2% and Brent Crude Settles at US $74.04

 

April 23, 2019

 

Oil prices jumped more than 2% on Monday to a near six-month high, on growing concern about tight global supplies after the United States announced a further clampdown on Iranian oil exports.

 

Washington said it will eliminate in May all waivers allowing eight economies to buy Iranian oil without facing U.S. sanctions.

 

Brent crude futures rose $2.07, or 2.88 percent, to settle at $74.04 a barrel. The session high of $74.52 a barrel for the international benchmark was the highest since Nov. 1.

 

U.S. West Texas Intermediate crude futures climbed $1.70, or 2.66 percent, to settle at $65.70 a barrel. The contract hit $65.92 a barrel, the highest since Oct. 31.

 

In November the United States reimposed sanctions on exports of Iranian oil but granted waivers to Iran’s eight main buyers: China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece. They were allowed to keep making limited purchases for six months.

 

U.S. Secretary of State Mike Pompeo reiterated that Washington’s goal was to bring down exports of Iranian oil to zero and said there were no plans for a grace period beyond May 1.

 

U.S. officials are seeking ways to prevent Iran from circumventing oil sanctions, a senior administration official said.

 

Iran said the decision not to renew the waivers has “no value” but Tehran was in touch with European partners and neighbors and would “act accordingly,” Iranian news agencies reported, citing the Foreign Ministry.

 

(Reuters)