Breaking News
0

Oil Prices Push Higher After Iran Seizes Tanker

CommoditiesJul 19, 2019 04:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Barani Krishnan

Investing.com – Oil prices moved higher Friday on reports that Iran had seized a British-flagged oil tanker in the Strait of Hormuz.

The August contract West Texas intermediate crude briefly crossed above $56 a barrel before falling back by the settlement in New York. WTI settled at $55.63, up 33 cents. Brent crude . the global benchmark, settled up 54 cents to $62.46 in London after hitting a high of $63.32.

It was not clear why the Iranians seized the tanker; the state-run media said it was for violations of international regulations.

But the move injected more uncertainty into global oil markets already struggling for direction in the face of near-constant Middle East tensions and fears of global supply gluts.

Despite the reports from the Strait of Hormuz, which connects the Persian Gulf to the Indian Ocean, oil prices fell more than 7% on the week, their worst performance in seven weeks.

The tanker seizure is just one more element in the tension-fraught relationship between the Trump Administration and authorities in Tehran. Almost any event can result in "swift policy changes,” New York-based Energy Intelligence said in its Petroleum Intelligence Weekly. “Phases of escalation followed by renewed peacemaking efforts would appear a likely pattern.”

Both Washington and Tehran had indicated in recent weeks that despite the grandstanding and hostilities aimed at each other the past year, they want to resolve their more-than-year-long standoff.

In a Thursday news conference at the Iranian mission to the United Nations, Foreign Minister Mohammad Javad Zarif suggested that President Donald Trump’s sanctions on Tehran’s oil and leaders be removed so that the two sides could talk.

Analysts believe that Zarif’s call will almost certainly be rejected by the Trump administration. For there to be talks, there should be no preconditions, Washington says. And in between all these, a U.S. warship in the Strait of Hormuz reportedly destroyed an Iranian surveillance drone on Thursday. But Tehran quickly denied losing any of its surveillance planes to Washington.

While it’s unlikely that Trump would agree to set aside all the sanctions he’s built against Iran’s oil and its leaders in order to bring Tehran to the negotiating table, it’s possible that he could meet Iran’s demands half-way. Trump could suspend his most objectionable sanctions against the Islamic Republic for a specified period – say three months -- to give the peace process a chance.

Investing.com’s projections are that the price of WTI and Brent oil will fall about $5 a barrel within a week or two of the announcement that the two sides are ready to talk. And every rebound thereafter will be checked by the possibility of an impending Iran Nuclear Accord 2.0.

Earlier in the week, Trump said a trade deal with China might not happen right away and that he considering heavier tariffs against Beijing, which did not buy U.S. farm products as expected. Any negative news on China tends to hurt oil prices as well.

Crude has also fallen over the past week compensating for overruns in estimates for the damage from Hurricane Barry.

Barry, which came ashore in central Louisiana on Saturday as a Category 1 hurricane, promptly weakened into a tropical storm. Oil companies have since reopened their platforms in stages, pressuring prices.

Oil Prices Push Higher After Iran Seizes Tanker
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Jay Khaye
Jay Khaye Jul 19, 2019 4:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How would you know if they did?  They might already be stealing from reserves.  The EIA data is fiction.  Why do you think production was reported as falling 400,000 b/d.  The numbers from State governments don't agree with EIA numbers.  In March EIA was over reporting Texas production by about 1.4 Million b/d.  Expect more drops from EIA in coming weeks and months.  Risky to be short in this market.
KADAR CHIRANKARA
KADAR CHIRANKARA Jul 19, 2019 3:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
KADAR C USA my from my bank id setup only month good incom my id only spice only usa my from yower football training close six hiyer fineesh my from faitting close my harte my selfe ok my Esterday my bank brach call NRI id crount id zero mani wate crimenal blaster my from life faitting my harte my bank id setup only join crimenal my from nothing my faicebook my id my only join nom not my ഒൺലി
Tony SK Lai
Tony SK Lai Jul 19, 2019 3:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Iran feedback to Trump`s kicking down oil price.
Alexey Belevich
Alexey Belevich Jul 19, 2019 3:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil price falling caused another "tanker attack"
Singhpurvanshi Atish
Singhpurvanshi Atish Jul 19, 2019 3:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
just kicked of Americans and there alliance all they are playing political game and ****innocent public.
Hank Williams
Hank Williams Jul 19, 2019 3:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump should release oil out of the federal reserve. Iran's game is just to drive up prices. the best way to quash Iran is to drive down prices.
Jim Allen
Jim Allen Jul 19, 2019 3:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Second oil tanker reported to be diverted about 20 minutes ago. Anither British Tanker. Name not yet disclosed.
Kevin Avila
Kevin Avila Jul 19, 2019 3:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just waiting for Bloomberg and CNN do defend Iran somehow
Lion King
Lion King Jul 19, 2019 3:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
of course Iran for them like a cute cat
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email