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LONDON – Oil prices rose slightly on Tuesday morning, despite escalating tensions between the United States and Iran that could further disrupt the oil exports of the Islamic Republic.
Brent crude, world benchmark, up 0.18% to $ 73.19 barrel on London
Intercontinental exchange
.
On the New York Mercantile Exchange, West Texas Intermediate futures traded up 0.46% to $ 68.19 per barrel.
Prices oscillated between gains and losses before closing on Monday after threats between president
Donald Trump
and his Iranian counterpart,
Hassan Rouhani,
while the oil market was trying to gauge the amount of Iranian crude that could be threatened.
Trump in May released the United States of a 2015 international agreement to curb the Iranian nuclear program, laying the groundwork for the reimposition of economic sanctions that should hinder the Iranian oil industry. Analysts have estimated that up to 1 million barrels per day of Iran more than 2.5 million barrels a day in oil exports could be in danger. Mr. Trump promised to impose the toughest possible sanctions.
"The market wants to focus on the current production in Iran" that will be affected by the new sanctions, said
Ole Hansen,
Head of Commodity Strategy at Saxo Bank. "The market is playing a little on the cool side," he added, noting that in the past, worries about the risks for Iran's supply have propped up prices a lot more.
After the withdrawal of Mr. Trump temporarily broke the symbolic threshold of $ 80 a barrel for the first time in more than three and a half years.
"Apparently, the market believes that there is only a slight probability that the Iranian crisis will worsen," analysts say.
Commerzbank
written in a daily note Tuesday
Prices have dropped over the last month following the decision of the Organization of Petroleum Exporting Countries – de facto led by Saudi Arabia – and partner producers like Russia to start increasing after more than a year of production delay. The decision was made as worries over the rapid rise in oil prices could hinder global economic growth.
Oil market observers turn to the weekly data from the American Petroleum Institute released Tuesday. Wednesday's Energy Information Administration
Among the refined products on Tuesday, Nymex reformulated the base fuel-gasoline-based referral contract-up 1.08 percent to $ 2.09 on the gallon. ICE diesel, a benchmark for diesel fuel, changed hands at $ 650.00 per tonne, down 0.12% from the previous regulation.
Writing to Christopher Alessi at [email protected]
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