The price of oil surged above $ 80 a barrel on Thursday for the first time since November 2014 on fears Iran’s exports would fall as supplies in a market already narrowed.
Brent crude futures were up 57 cents at $ 79.85 a barrel, after hitting $ 80.
US crude oil futures rose 64 cents to $ 72.13 a barrel, also the highest price since November 2014.
The head of macroeconomic research and commodities at Julius Baer’s Swiss bank, Norbert Rucker, said: “Geopolitical noise and escalation concerns remain. Concern after the United States withdrew from the Iranian nuclear agreement. ”
Oil prices have been rising in recent weeks on the prospect of a sharp drop in Iran’s oil exports in the coming months due to renewed US sanctions following President Donald Trump’s decision to withdraw from the global nuclear deal with Tehran.
France’s Total warned on Wednesday it could abandon a multi-billion-dollar gas project in Iran if it failed to obtain a US exemption from US sanctions, casting doubt on Europe-led efforts to salvage the nuclear deal.
Source: Alforat News