Positive Supply Figures Halt Rise in Oil Prices – for Now

Word from analysts that there are sufficient quantities of stored oil in addition to positive levels of crude output from OPEC-member countries, Russia and the United States has put at least a temporary halt to price increases stemming from a coming clampdown by the US against Iran. Prices had been rising with word that the Trump Administration planned to follow through on its plan to end a six-month sanctions waiver on the import of Iranian crude by such countries as Japan, India, China, South Korea, Turkey and Italy, all of which have relied heavily on the Islamic Republic for their oil. The waivers came as Washington renewed economic and other sanctions against Tehran and those doing business with it after the US withdrew from a multilateral 2015 accord aimed at preventing the Iranians from developing nuclear weapons. Despite the slight drop in prices, analysts believe that the end to the waivers, scheduled for May 2, will soon tighten crude markets and, at least in the short term, lead to higher prices.