Baku, Azerbaijan, Oct.9
By Leman Zeynalova – Trend:
Oil markets remained well supported by two weeks of energy week dialogues, first in Singapore and then in New York, with most market participants fairly bullish on the back of supply-side shock from Iran, the US JP Morgan Bank said in its reported obtained by Trend.
"Oil is up by 1.7 percent since Sept.28. Although it was initially up by $3.6 per barrel in the first three days of trading, it lost just over $2 per barrel toward the end of the week, most likely due to producer selling, profit taking from some investors, and some comments from Saudi Arabia of meeting all the barrels lost by Iran so far," said the bank.
JP Morgan believes that it’s a relatively high volatility market, and large intraday moves of over $2 per barrel were common in the week ended Oct.5.
Despite rising US supply and crude inventories, the oil price rally should continue due to "poisoned" Iranian barrels that no country wants to touch until there is more clarity on Iran sanctions post Nov.4, said the report.
Sanctions are due to be re-imposed on Iran's oil industry on November 4. The move comes after US President Donald Trump decided to withdraw his country from the 2015 nuclear deal in May.
The US has said that countries or companies that conduct transactions with Iran are liable to face secondary sanctions.
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