Oil rebounds as new Iran sanctions fuel more supply concerns

Reuters – June 16th 2022

By David Gaffen

NEW YORK, June 16 (Reuters) – Oil prices rose on Thursday in topsy-turvy trading after the United States announced new sanctions on Iran, and as energy markets stayed focused on supply concerns that have sent prices soaring this year.

The market slipped earlier as interest rate hikes in the United States, Britain and Switzerland fed worries about global economic growth.

Brent crude futures settled at $119.81, up $1.30, or 1.1%, while West Texas Intermediate (WTI) crude futures ended up $2.27, or 2%, at $117.58.

After the early selloff, buyers jumped back into the market as most forecasters expect supply to remain tight for several months.

“A lot of it is just a supply issue and that has to be worked through,” said Eli Tesfaye, senior market strategist at RJO Futures. “Right now there isn’t a slowdown in global demand so any selloff is going to be seen as an opportunity and that’s really what we saw today.”

The International Energy Agency said it expects demand to rise further in 2023, growing by more than 2% to a record 101.6 million barrels per day. Optimism that China’s oil demand will rebound as it eases COVID-19 restrictions is also supporting prices. read more

Analysts said prices got a boost from Washington’s decision to impose sanctions on Chinese, Emirati and Iranian firms that help export Iran’s petrochemicals. read more

Read more on the original:

https://www.reuters.com/markets/europe/oil-rebounds-after-steep-drop-underpinned-by-tight-supplies-2022-06-16/