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Crude Oil Rallies on US Sanctions Against Iran, Still Heads to Weekly Losses

August 10, 2018 at 16:21 by Vladimir Vyun

Futures for crude oil logged big gains today amid concerns that US sanctions against Iran can hurt global supply of crude. In fact, the International Energy Agency voiced worries that it may be hard to maintain adequate world’s supply with the sanctions, saying:

As oil sanctions against Iran take effect, perhaps in combination with production problems elsewhere, maintaining global supply might be very challenging and would come at the expense of maintaining an adequate spare capacity cushion

For the week, though, crude was still heading for losses. Market participants were worried that trade wars and geopolitical tensions may hurt global growth. And that bodes ill for oil consumption.

Later today, Baker Hughes will release its US oil rig count. Last week, the agency reported about a decrease of rigs by 2.

Contract for delivery of WTI crude oil in September surged by 1.20% to $67.61 per barrel as of 16:10 GMT on NYMEX today. October Brent crude advanced 1.01% to $72.80 per barrel on ICE.

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