By Florence Tan
SINGAPORE (Reuters) – Oil costs hovered round two-week highs on Monday, following beneficial properties of 6% final week, as geopolitical tensions between Western powers and main oil producers Russia and Iran escalated. intensified, rising the dangers of provide disruption.
Brent crude futures rose 13 cents, or 0.2%, to $75.30 a barrel at 0115 GMT, whereas U.S. West Texas Intermediate crude futures have been at $71.38 a barrel, in up 14 cents, or 0.2%.
Both contracts final week posted their largest weekly beneficial properties since late September, reaching their highest settlement ranges since Nov. 7, after Russia fired a hypersonic missile at Ukraine in a warning to the United States and the Kingdom United following Kiev’s assaults on Russia utilizing US and British weapons. .
“Recent commerce signifies the warfare has entered a brand new and harmful part, elevating issues about provide disruptions,” ANZ analysts led by Daniel Hynes mentioned in a observe.
Additionally, Iran reacted to the decision handed by the United Nations nuclear watchdog on Thursday by ordering measures such because the activation of varied new and superior centrifuges used to complement uranium.
“The IAEA censorship and Iran’s response improve the probability that Trump will search to impose sanctions towards Iranian oil exports when he involves energy,” Vivek Dhar, a commodities strategist on the Commonwealth Bank of Australia.
Applying sanctions might sideline about 1 million barrels a day of Iranian oil exports, about 1% of world oil provide, he mentioned.
Iran’s Foreign Ministry mentioned on Sunday it’s going to maintain talks on its controversial nuclear program with three European powers on November 29.
Investors additionally centered on the rising demand for crude oil from China and India, the world’s largest and third largest importers respectively.
China’s crude imports rebounded in November as decrease costs attracted demand for provides, whereas Indian refiners elevated crude output by 3% year-on-year to five.04 million bpd in October, supported by gasoline exports.
(Reporting by Florence Tan; Editing by Sonali Paul)
