Today the markets expect an announcement from the United States about the termination of the special waivers granted to several countries reliant on Iran for oil. When the US reinstated oil sanctions on Iran last year as a result of ending the nuclear deal with the Middle-Eastern country, several key trading partners of the United States who are among Iran’s biggest buyers of oil were granted a six-month exemption - a transition period of sorts to stock up on Iranian oil and secure partnerships with other oil exporters for the future. Now these exemptions are coming to an end and if these countries want to continue buying oil from Iran, they will be faced with sanctions.
This news will naturally lead to a further shortage of supply on the oil market, which has already caused the price of oil to increase. The Brent crude futures reached $74.31, while the WTI brand reached $65.87 per barrel. Both of these prices are the highest for 2019 yet.
The market is already pressured by political troubles in Libya and Venezuela, who have not been able to export oil at their normal rates. Moreover, OPEC continues to keep supply purposefully low.
