Oil prices rose on April 26, supported by expectations of renewed U.S. sanctions on Iran, declining output in Venezuela and continuing strong demand.
Brent crude oil futures were up 59 cents at $74.59 a barrel at 1354 GMT, having touched a session high of $74.97, while U.S. West Texas Intermediate (WTI) crude futures rose 23 cents to $68.28 a barrel.
The oil price has risen by 15% in the last four weeks thanks to expectations that the United States will reimpose sanctions on Iran, a major oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC).
French President Emmanuel Macron said on April 25 he expected U.S. President Donald Trump to pull out of a deal with Iran reached in 2015 in which the Islamic Republic suspended its nuclear program in return for western powers lifting crippling sanctions.
Trump will decide by May 12 whether to restore U.S. sanctions on Tehran, which would probably result in a reduction of Iranian oil exports.
“Geopolitical concerns in the Middle East, together with Venezuela’s deteriorating macroeconomic situation, are supporting oil prices. It is widely anticipated that President Trump will pull the U.S. out of the Iran nuclear deal, which is bullish for prices”, said Abhishek Kumar, senior energy analyst at Interfax Energy’s Global Gas Analytics.
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