Oil jumps as effects of coming Iran sanctions are already being felt
Iranian exports have fallen by a third, while US output has hit a new record
Singapore — Oil prices rose 1% on Thursday as investors focused on the prospect of tighter markets due to US sanctions against major crude exporter Iran, set to take effect in November. Front-month Brent crude futures were at $82.17 a barrel at 1.33am GMT, up by 83c or 1% from their last close, just off Tuesday's four-year highs. US West Texas Intermediate (WTI) crude futures were at $72.41 a barrel, up 84c or 1.2% from their last settlement. Traders say oil markets are tightening ahead of Washington's planned sanctions against Iran's petroleum industry from November 4. "We view that crude market risks are heavily skewed to the upside and while we are not explicitly forecasting Brent to rise to $100 a barrel, we see material risks of this coming to fruition," Japanese bank Mitsubishi UFJ Financial Group said in a note to clients. At its 2018 peak, Iran exported about 3-million barrels a day of crude oil, equivalent to 3% of global consumption. Shipping data shows Iranian exports in ...
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