The world oil prices hit 2019 peaks due to the US sanctions on Iranian oil exports.
International oil prices are increasing as US sanctions on Iran are now impacting oil industry. Crude features are sharply increased while Brent North Sea crude reached $74.70 per barrel. On the other side, WTI hit a similar near six-month high at $66.19 per barrel.
The United States on Monday announced that it was calling an end to six-month waivers that had exempted countries from unilateral US sanctions on Iranian oil exports. Beginning in May, these countries – China, India, Turkey, Japan, South Korea, Taiwan, Italy and Greece – will face sanctions if they continue to buy oil from Iran.
However, Iran´s daily oil output amounts to 1.3 million barrels, as per the latest figures. On the other side, the sustainability of oil´s rally depends on Saudi and other OPEC members´ actions to increase oil supply in the month to come.
Oil quickly repriced higher on fears that markets could face an immediate supply crunch, adding more pressure to the already tenuous global supply squeeze. However, rising oil prices meant $80 per barrel is now a “possibility”.