Meanwhile, broader sanctions are proposed against Russia: File Image/Pixabay
Oil rose on Friday due to jaded traders realizing that the talks this week between the U.S. and Iran may not, despite Iran’s foreign minister saying the talks will continue, prevent Washington from taking military action against the Islamic republic.
Brent settled up 50 cents at $68.05 per barrel, and West Texas Intermediate settled up 26 cents at $63.55 per barrel.
John Kilduff, founding partner at Again Capital, said “It’s status quo nervousness over Iran,” and he further explained that, “We keep going back and forth on this Iran situation.”
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It’s status quo nervousness over Iran
John Kilduff, founding partner, Again Capital
Bloomberg noted that trading was buoyed “after data showed US consumer sentiment unexpectedly improved to the highest in six months, calming some concerns over an economic slowdown in the country that could lead to a potential slowdown in oil demand.”
However, geopolitical tensions – and oil’s gains – were offset by negotiations with the U.S., Ukraine and Russia, with the envoy to U.S. president Donald Trump stating that progress was good and results were expected “in the coming weeks.”
Pundits were further buoyed that the latest negotiations resulted in an agreement to exchange prisoners for the first time in five months.
Meanwhile, sources told media that due to the methodical recovery from fires and power failures at the Tengiz oilfield, Kazakhstan’s oil exports could fall by as much as 35 percent in February via its main route through Russia.
Also on Friday, the European Commission proposed an escalation of sanctions against Russian crude exports, targeting not just ships or buyers but also the services that make seaborne oil trade possible.
If enacted, the plan would ban European firms from providing shipping, insurance, financing, and other maritime services for Russian crude at any price; however, unanimity among European Union members will be required for these initiatives to take effect.