As Expected, OIl Prices Shoot Up After Trump Cancels Iran Nuclear Deal


As Expected, OIl Prices Shoot Up After Trump Cancels Iran Nuclear Deal

US President Donald Trump’s decision on Tuesday to pull out of the Iran nuclear deal can increase pressure on government finances through a higher subsidy bill and pinch consumers by keeping oil on the boil ahead of next year’s general election.

A day after Trump’s decision, global benchmark Brent crude hit its highest since November 2014 at $77 a barrel on Wednesday on fears over tightening supply when inventories are shrinking due to production cut by Opec and Russia since December 2016 and an uptick in demand.

The Energy Information Administration added to the bullish sentiment by reporting a drawdown of over two million barrels, double the market expectations, from US oil inventories to indicate healthy demand growth. Read More

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