Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures continue to ascend higher during the Asian trade session. Overnight, Secretary of State Mike Pompeo said that the United States will end Iranian export wavers of oil to countries already receiving them. This will go into effect on May 2 and will pressure countries importing oil from Iran to stop or face sanctions.
As of 2:40 am GMT, the international benchmark, Brent crude futures contract was trading close to its highest point of 2019. The international benchmark was up 0.5 percent to trade at $74.40 per barrel.
U.S. West Texas Intermediate (WTI) crude futures, for front end delivery, were also up. This contract hit its highest price point since October 2018 at $65.95 per barrel. They then lost some gains to trade at $65.89. This is a gain of 0.5 percent from their Monday’s close.
Crude Oil Traders React to Iranian Trade Sanctions and end to Waivers
Yesterday, the United States demanded that importers of Iranian oil stop imports by May 1. If they do not comply then they could face sanctions. This has brought to an end six months of waivers that allowed Iran’s eight biggest oil importers, mostly in Asia, to continue importing Iranian oil.
Before the sanctions went back into force, last year, Iran was the fourth largest producer in the Organization of the Petroleum Exporting Countries (OPEC). Iran pumped about three million barrels per day. As of April Iranian oil exports have fallen below one million barrels per day.
In addition to Iranian sanctions, the United States also has a trade embargo against oil imports from another OPEC member, Venezuela.
