Oil extended gains after leaping to a six-month high Monday as the Trump administration said it will no longer give any country a pass on sanctions barring purchases of Iranian supply.
Crude has rallied about 38 percent this year as OPEC and its partners embarked on their mission to cut output and curtail a global glut. Disruptions in Venezuela, Nigeria and Libya have helped further squeeze supplies. America’s decision to zero out exemptions for purchasing oil from the cartel’s fourth-largest producer adds to the bullish picture, with RBC Capital Markets forecasting a loss of 700,000 to 800,000 barrels a day in Iranian exports.
Brent for June settlement climbed as much as 39 cents to $74.43 a barrel on the London-based ICE Futures Europe exchange, and was at $74.27 a barrel at 8:57 a.m. in Singapore. Prices rose $2.07 on Monday to $74.04, the highest close since Oct. 31. Brent was at a premium of $8.52 to WTI.
West Texas Intermediate for June delivery rose as much as 35 cents to $65.90 a barrel on the New York Mercantile Exchange before trading at $65.76 a barrel. The May contract expired on Monday at a six-month high of $65.70.
Source : Bloomberg