Oil surges on threat to PDVSA, Iran worries
Offshore staff
NEW YORK– Oil prices rose to their highest levels since late 2014 on Monday, boosted by the latest troubles for Venezuelan oil company PDVSA and a looming decision on whether the United States will re-impose sanctions on Iran, according to Reuters.
Brent crude oil futures reached $75.81/bbl, while West Texas Intermediate (WTI) crude futures rose to $70.40/bbl, the first time since November 2014 that WTI had climbed above $70/bbl.
China’s Shanghai crude oil futures, launched in March, broke their dollar-converted record high, touching $72.54/bbl.
US oil major ConocoPhillips has moved to take Caribbean assets of Venezuela’s state-run PDVSA to enforce a $2 billion arbitration award, three sources told Reuters. The move could deal a further blow to the company’s declining oil output and exports. Venezuela’s oil output has halved since the early 2000s to 1.5MMb/d, hit by a lack of investment.
Also boosting prices is the widespread expectation that US President Donald Trump will withdraw from the Iranian nuclear pact. Trump has a May 12 deadline to determine whether to extend sanction waivers.
05/07/2018