Oil Keeps Rising as Iran Concerns Heat Up and US Weather Factors In

Oil rose above $68 a barrel to its highest since May 2015 on Thursday after unrest in Iran raised concerns about supply risks, with support also coming from OPEC-led output cuts and demand-boosting cold weather in the United States.

West Texas Intermediate graph

Six days of anti-government protests in OPEC’s third-largest producer have added a geopolitical risk premium to oil prices, though Iran’s production and exports have not been affected.

Brent crude LCOc1, the international benchmark, was down 11 cents at $67.73 a barrel by 1455 GMT but traded as high as $68.27 earlier in the session. U.S. crude CLc1 rose 4 cents to $61.67 and also touched its highest since May 2015.

“There is enough support for prices with the cold in the U.S. and the geopolitical factor,” said Petromatrix oil analyst Olivier Jakob.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the nagribahFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.