Following US sanctions against Iran’s oil income stream and ahead of an Opec+ meeting on Sunday, when experts anticipate the group will not unravel remaining voluntary cutbacks, oil prices increased $1 per barrel on Tuesday. By 1:00 p.m. EDT (1700 GMT), Brent crude was up $1.08, or 1.58%, at $69.23 per barrel.
The price of a barrel of US West Texas Intermediate oil was $65.71, up $1.70 or 2.66%. Due to the US Labour Day vacation, WTI futures did not settle on Monday. The US Treasury Department sanctioned a network of shipping firms and ships headed by an Iraqi-Kittitian businessman on Tuesday for smuggling Iranian oil under the pretext of Iraqi oil.
While nuclear negotiations have stagnated, President Donald Trump’s administration continues to put pressure on Iran. After a 12-day battle broke out in June, a sixth round of the talks was put on hold.
Prices today were undoubtedly helped by the US’s crackdown on Iranian exports, according to Phil Flynn, a senior analyst at Price Futures Group. On September 7, eight members of the Organization of the Petroleum Exporting Countries and their allies will meet under the observation of investors.
The group’s remaining voluntary cutbacks from the eight members, including Saudi Arabia and Russia, which were bolstering the market and maintaining prices around $60 per barrel, are unlikely to be rolled back, according to analysts.
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