[ad_1]
US crude prices surged Monday, reaching a four-year high on signs that sanctions are reducing Iran's crude exports and that North American trade tensions are easing.
Oil prices rose after the United States, Canada and Mexico announced their agreement on the way forward for the North American Free Trade Agreement, or NAFTA. A trade dispute between the three trading partners has led to fears of a slowdown in growth likely to have an impact on oil demand.
"The stock market loves it, it's triggering a bigger economic activity, and it should allow Mexico to buy us crude oil," said John Kilduff, founding partner of private equity firm Energy Capital.
The market also bounced back from reports that China's Sinopec halved crude oil imports from Iran ahead of the Trump administration deadline of 4 November for oil buyers to stop trading. import Iranian supplies.
Questions arose as to whether China, the world's second largest consumer of crude oil, would respect US sanctions.
The agreement reached by the National Iranian Oil Company for the construction of a crude oil storage facility in the port of Oman is also considered a tacit recognition that Iran expects its market to contracts, said Kilduff.
Source link
