U.S. sanctions on Iran to boost prices, keep oil at $70/bbl: Reuters poll | Reuters

U.S. sanctions on Iran to boost prices, keep oil at $70/bbl: Reuters poll | Reuters:

"Brent crude prices will sustain levels above $70 a barrel for longer, as U.S. President Donald Trump’s decision to reimpose sanctions on Iran is likely to tighten supply, a Reuters poll of analysts showed on Wednesday.

A survey of 11 analysts showed Brent crude LCOc1 prices were likely to average $71.22 a barrel this year and $71.26 in 2019, a sharp increase from the $67.40 and $66.39-per-barrel levels forecast in the April poll. Brent has averaged about $69 a barrel this year thus far and nearly touched $80 a barrel this week.

“Oil markets should become tighter due to a lower output from Iran, coupled with an ongoing contraction in Venezuelan output and OPEC cuts,” said Daniela Corsini, commodity market economist at Intesa Sanpaolo in Milan."



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