Oil jumps on fears of new Iran sanctions, Iraq conflict.
Oil markets jumped in early today on concerns over potential renewed U.S. sanctions against Iran as well as conflict in Iraq, while a falling U.S. rig count supported prices there. U.S. President Donald Trump struck a blow against the 2015 Iran nuclear deal on Friday, defying both U.S. allies and adversaries by refusing to formally certify that Tehran is complying with the accord even though international inspectors say it is. Under U.S. law, the president must certify every 90 days to Congress that Iran is complying with the deal. The U.S. Congress will now have 60 days to decide whether to re-impose economic sanctions on Tehran that were lifted under the pact.
During the previous round of sanctions against Iran, some 1 million barrels per day (bpd) of crude oil supplies were cut off global markets. While analysts said they did not expect renewed sanctions to have such a big impact again, especially as the United States would likely act alone, they did warn that such a move would be disruptive. Drillers cut five oil rigs in the week to Oct. 13, bringing the total count up to 743, the lowest since early June.
(Source: Investing)
More will update soon!!!
