Oil Reflects Iran Supply Risk as Price Premium Takes Hold - Bloomberg:
Brent crude is signaling that U.S. sanctions against Iran’s oil exports are starting to be felt in global markets.
Futures for settlement in November -- when the American measures will go into effect -- are trading higher than contracts for later months. That market structure, known as backwardation, is reflecting fears of a supply crunch. Meanwhile, Brent’s premium to New York prices has risen as U.S. crude is weighed down by pipeline bottlenecks and speculation that President Donald Trump will pursue efforts to lower fuel costs.
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