CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Oil prices surge amid US sanctions on Iran's petroleum

Oil prices have surged ahead of US plans to sanction Iran’s petroleum exports

IG Analyst

Publication date : 2018-09-24T03:24:23+0100

Oil

US commercial crude oil inventories have hit the lowest since 2015, ahead of sanction plans against Iran’s petroleum exports, taking effect as early as November.

Brent crude futures rose to $79.74 per barrel on Monday, jumping 94 cents. US West Texas Intermediate (WTI) crude futures also rose by 74 cents, at $71.52 a barrel. This comes ahead of sanction plans to be implemented against Iran’s petroleum exports in November.

Analysts are concerned the sanctions could result in a drop of crude exports. There are also concerns that the sanctions on Iranian exports could put pressure on surrounding countries. India’s government is already planning to ask state oil firms to lock in their crude futures purchase price, anticipating spikes.

Members of The Organization of the Petroleum Exporting Countries (OPEC) met with other oil producers on Sunday, announcing there would be no immediate rise in crude output.

The OPEC is considering rising output by 500,000 bpd to counteract the fall in supply from Iran. Although, no final decision has been made.

This comes despite, US President Trump’s tweets last week, calling on OPEC to lower prices.

Trump tweet

OPEC’s mid-term report shows that non-OPEC supply from countries led by the US would rise by 2.4 million bpd in 2019.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.