September 23, 2020

Texas oil falls 2.1% after Trump's order to extend sanctions to Iran

The price of Texas intermediate oil (WTI) fell 2.1% on Wednesday and closed at $ 58.11 a barrel, following the announcement by US President Donald Trump that it will substantially increase sanctions on Iran .

At the end of live operations on the New York Mercantile Exchange (Nymex), WTI futures contracts for delivery in October subtracted $ 1.23 from Tuesday's close.

Texas oil prices extended the decline of the previous session after President Donald Trump ordered the Treasury Department on Wednesday to "substantially increase" sanctions against Iran.

Trump's announcement is a reaction to last weekend's attacks on the world's crude oil processing plant and oil field in Saudi Arabia, which forced the kingdom to cut its production in half. Oil prices had a record rise on Monday of 15%.

50% of the loss of oil production from the attack has been restored in the last two days and the production capacity will reach 10 million barrels per day by the end of this month, according to Saudi.

Iran says it was not behind the attacks. Iranian President Hassan Rouhani said the attacks against Aramco were a "reciprocal response" to the aggression against Yemen.

But Secretary of State Mike Pompeo blamed Iran for the drone attacks and said in a tweet on Saturday that Iran launched an "unprecedented attack on the world's energy supply."

US crude oil inventories increased by 1.1 million barrels compared to the previous week, according to the Energy Information Administration. Analysts expected a decrease of 2.5 million barrels.

In this context, gasoline futures contracts expiring in October fell by about two cents, leaving $ 1.65 a gallon, and those of natural gas expiring for the same month subtracted three cents to $ 2.63 per every thousand cubic feet.

. (tagsToTranslate) oil (t) Texas (t) Trump (t) sanctions (t) Iran

Source link