Tehran’s nuclear program, strong US data lift crude oil price

by   |  VIEW 405
Tehran’s nuclear program, strong US data lift crude oil price

On Monday, the 8th of July 2019, Crude oil prices extended its Friday’s (July 5th) rally, almost entirely goaded by a mounting tension around Tehran’s nuclear program alongside a better-than-anticipated US employment figure.

While this report was being prepared, during morning European trading hours, UK crude was up by 0.30 percent to $64.57 per barrel, while US West Texas Intermediate crude was up by 0.26 percent at $57.69 a barrel. While a bundle of troublesome issues including several attacks on oil tankers, some military attacks at oil facilities near Saudi border and downing of a US unmanned drone, had been storming the strategically significant Strait of Hormuz and the Gulf ocean offshore of Qatar, a Vienna based consultancy JBC Energy said, “The weekend was dominated by Iran, with the announcement that uranium enrichment had breached JCPOA limits being greeted by a chorus of warnings from European states not to push enrichment too far”.

Nonetheless, last week, Iran said that it had boosted its uranium enrichment to 5 percent, higher from a 3.6 percent level it was allowed to store under 2015 Iran nuclear treaty as an act of retaliation against latest US sanction on its oil-dependent economy.

Aside from that, a strong employment figure in June, which revealed US economy added 2,24,000 new jobs in June, its best figure in five months, would likely to add a bullish breeze to crude oil future prices, meanwhile easing some concerns related to global slowdown risks.