Business News
This is a very good one for most crude exporting countries such as Nigeria
Oil prices jumped over 2% in the first trading hours of 2016 as
relations between Middle Eastern rivals Saudi Arabia and Iran deteriorated following Riyadh's execution of a prominent Shia Muslim cleric.
Saudi Arabia cut diplomatic ties with Iran on Sunday, responding to the storming of its embassy in Tehran in an escalating row between the two major oil producers over Riyadh's execution of cleric Nimr al-Nimr. Global oil benchmark Brent climbed over 2.5% and more than a dollar to a morning high of $38.50 per barrel on Monday, before easing back to $38.28 at 0136 GMT — still up $1.
US crude's West Texas Intermediate (WTI) futures were up 76 cents, or 2.05%, at $37.80 a barrel. Despite this jump, oil prices are down by two-thirds since mid-2014 on ballooning oversupply as producers pump between 0.5 and 2 million barrels of oil every day in excess of demand."It's bizarre. We left 2015 on a low, but everybody knew that geopolitics can be one of the biggest price drivers in oil.
And now we're back in the office to a new year, political risk is right back into the market," said an oil trader.
Saudi Arabia is the world's biggest oil exporter while Iran, which has some of the biggest proven reserves, hopes to ramp up exports.
Oil prices jumped over 2% in the first trading hours of 2016 as
relations between Middle Eastern rivals Saudi Arabia and Iran deteriorated following Riyadh's execution of a prominent Shia Muslim cleric.
Saudi Arabia cut diplomatic ties with Iran on Sunday, responding to the storming of its embassy in Tehran in an escalating row between the two major oil producers over Riyadh's execution of cleric Nimr al-Nimr. Global oil benchmark Brent climbed over 2.5% and more than a dollar to a morning high of $38.50 per barrel on Monday, before easing back to $38.28 at 0136 GMT — still up $1.
US crude's West Texas Intermediate (WTI) futures were up 76 cents, or 2.05%, at $37.80 a barrel. Despite this jump, oil prices are down by two-thirds since mid-2014 on ballooning oversupply as producers pump between 0.5 and 2 million barrels of oil every day in excess of demand."It's bizarre. We left 2015 on a low, but everybody knew that geopolitics can be one of the biggest price drivers in oil.
And now we're back in the office to a new year, political risk is right back into the market," said an oil trader.
Saudi Arabia is the world's biggest oil exporter while Iran, which has some of the biggest proven reserves, hopes to ramp up exports.
No comments:
Post a Comment