Oil prices fall despite sanctions against Iran

SANAA, April 24 (YPA) – Oil prices fell on Wednesday, with signs that global markets are still receiving enough supplies, although prices jumped to the highest level in 2019 this week as Washington sought tougher sanctions on Iran.

Crude futures for global measurement Brent hit 74.24 dollars a barrel, down 27 cents, equivalent to 0.4 percent compared with the previous closing price.

WTI crude futures averaged $ 66.05 a barrel, down 25 cents, or 0.4 percent, from the previous settlement.

Crude oil prices rose for immediate delivery to the highest level in 2019 earlier in this week after the United States said on Monday it would end all exceptions to the sanctions imposed on Iran, calling for countries to stop oil imports from Tehran as of May or face sanctions from Washington.

US sanctions on oil-exporting Iran were applied in November 2018, but Washington has allowed the largest buyer of Iranian crude limited imports for six months.

With a sharp drop in Iran’s oil exports as most countries comply with US pressure, Goldman Sachs and Barclays said this week that global crude markets are expected to see short term shortfalls.

Analysts say the world oil markets are still receiving sufficient supplies thanks to the abundant spare capacity of the Organization of the Petroleum Exporting Countries (OPEC), which is dominated by countries from the Middle East, as well as the production of Russia and the United States itself.

The International Energy Agency (IEA) said in a statement on Tuesday that markets were receiving sufficient supplies and that excess capacity remained at comfortable levels.

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