VAIDS

Monday, May 14, 2018

Oil falls away from multi-year highs on surge in U.S. drilling, Iran sanctions opposition

Oil prices on Monday fell away from last week's multi-year highs as a relentless rise in U.S. drilling activity pointed to increased output, while resistance emerged in Europe and Asia to U.S. sanctions against major crude exporter Iran.

Brent crude futures LCOc1 were
at $76.65 per barrel at 0415 GMT, down 47 cents, or 0.6 percent from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $70.41 a barrel, down 29 cents, or 0.4 percent.

Brent and WTI last week reached their highest since November 2014 at $78 and $71.89 per barrel respectively, as markets expect Iran's oil exports to fall significantly once U.S. sanctions bite later this year.

"Around a million barrels of oil a day is likely to disappear from global oil markets if the U.S. sanctions on Iran bite," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. 

"But it is still far from certain that they will bite in the way intended... Germany has said it will protect its companies from U.S. sanctions, Iran has said French oil giant Total has yet to pull out of its fields and all the while it seems the Chinese..." 

 Read the full story here: https://lnkd.in/eJ9-GQr   

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