Oil prices retreat on fears that Iran sanctions will restrict exports
Prices are capped by a stronger dollar and signs that China’s economic growth may be slowing; the supply overhang of 2014-17 has been virtually eliminated
New York — Oil prices retreated below multi-year highs hit early in the day on Tuesday, supported by concerns that US sanctions on Iran, which are likely to restrict crude oil exports from one of the biggest producers in the Middle East. Prices remained capped by a stronger dollar and by concerns that China’s economic growth may be slowing after the major oil consumer reported weaker-than-expected monthly data. Brent crude oil reached an intra-day peak of $79.47 a barrel, up $1.24 and its highest since November 2014, before retreating to $78.37, up 14c by 4.45pm GMT. US light crude was 20c lower at $70.76 a barrel, also not far off its highest since November 2014. "You had a series of weak economic data points overnight," said John Kilduff, a partner at Again Capital Management in New York. China reported weaker-than-expected investment and retail sales in April and a drop in home sales, clouding its economic outlook, even as policy makers try to navigate debt risks and defuse a hea...
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