Oil Down 2% on Looming Iran Deal; Russia-Ukraine Limits Loss By Investing.com

© Reuters.

By Barani Krishnan

Investing.com  — Iran or Russia? Make your pick.

Oil traders went broadly for the first of the two factors in Thursday’s trade, sending crude prices down 2% on the prospect that Tehran could soon resume its nuclear pact with world powers and rescind U.S. sanctions that could legitimately return a million new Iranian barrels or more to the world market. 

But oil’s losses on the day were still limited by escalating Russia-Ukraine tensions, which reached fever-pitch on Thursday on reports of shelling in Eastern Ukraine which were not necessarily related to the conflict between the two sides, said those in the know.

Away from the stand-off point at Ukraine’s borders, Russia continued to engage in a verbal war with the United States and Western allies of Ukraine, which it accused of aggravating the conflict. Washington and its NATO partners, meanwhile, accused Moscow of just waiting for the right moment to invade Ukraine and creating all sorts of pretexts to achieve that.

“There are just so many unknowns in the Russian-Ukraine stand-off that each trade might not last beyond the next headline,” said John Kilduff, partner at New York energy hedge fund Again Capital. “Given this extremely challenging circumstances and volatility, traders have opted to keep a limited risk upside on oil — i.e. $90 support — while focusing on the ‘now’ in the trade, which is the possibility of the Iran deal.”

New York-traded , the benchmark for U.S. crude, settled down $1.90, or 2%, at $91.76. 

London-traded , the global benchmark for oil, settled down $1.84, or 1.9%, at $92.97. 

Reuters, reporting on a draft it obtained on the tentative Iranian deal, said there would be various phases to bring Tehran back into compliance with its 2015 nuclear agreement with world powers. 

It also said some $7 billion in Iranian funds stuck in South Korean banks under U.S. sanctions could be unfrozen first, before the sanctions themselves are removed, allowing Iran to freely trade its oil but with continued surveillance of its nuclear capabilities.

No timelines had been drawn yet for any of these, though the need for a deal was urgent, Reuters said.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

by : Investing.com

Source link

Capital Media

Read Previous

Rising costs of climate change threaten to make skiing a less diverse, even more exclusive sport

Read Next

Yen bid, bitcoin battered as Ukraine fears leave traders nervous By Reuters