CALGARY / LONDON (Reuters) – Brent oil rose on Wednesday, boosted by a threat from an Iranian commander and a drop in US crude inventories for the second consecutive week.
The price rose to $ 78 a barrel after a commander of the Iranian Revolutionary Guards said he was ready to avoid regional oil exports if sales of Iranian oil were prohibited by the United States.
The most active Brent LCOc1 futures contract for September delivery reached 48 cents at $ 78.24 per barrel. US crude futures CLc1 were up 19 cents at $ 74.33 a barrel, in view of Tuesday's 3-1 / 2-year high above $ 75 a barrel. The US market UU It will not have a settlement price due to the US Independence Day holiday. UU
Iranian President Hassan Rouhani appeared on Tuesday threatening to stop oil shipments from neighboring states if Washington continued to pressure all countries to stop buying Iranian oil.
The impending US sanctions UU On exports of Iranian crude, the force majeure in Libya and unforeseen interruptions of oil pipelines in Nigeria have been clouding supply prospects despite the increased production of the Organization of the Petroleum Exporting Countries.
"In an ideal world, an increase in global or regional oil production would have a downward pressure on prices, but these are not normal times since supply cuts are almost weekly occurrences," he said. the strategist of PVM Oil Associates, Tamas Varga.
"Under these circumstances, it is justified to argue in favor of higher prices when production increases are announced," he said.
Crude inventories fell by 4.5 million barrels in the week to June 29 to 416.9 million, compared to analysts' expectations of a decrease of 3.5 million barrels. Crude stocks at the distribution center in Cushing, Oklahoma fell by 2.6 million barrels, API said. Crude oil reserves at the Cushing oil storage facility have fallen after an interruption at Syncrude's 360,000 barrel per day (bpd) oil sands facility in Canada, near Fort McMurray, Alberta.
The national holiday of the USA. UU It would have been limited on Wednesday, although the market has been more volatile.
The volatility of the implicit options, a way of measuring uncertainty among oil traders and investors, is the highest since the period leading up to last month's OPEC meeting where an agreement was reached to soften the cuts of production since January 2017. [19659004WithoutthepanoramaclaritiesinvestorsrequiresopportunitiestoprotectfromanymodernmovementproceedHarryTchilinguirianprofessorofthestrategiesofBNPParibasprime
"When there is consolidation in the market, there is also the expectation of a possible price break in any direction.Then, in the options market, the volatility increases," he told Reuters Global Oil Forum.
Investors can bet on various aspects of an option, from the premium to the price, to the extent that that option could move.
Additional report by Henning Gloystein in Singapore; Editing by Edmund Blair and Chris Reese