Oil Action: Front-month WTI crude prices are up by 0.2%
Oil Action: Front-month WTI crude prices are up by 0.2% at $69.94, having recouped from an intraday low at $69.54 while still holding comfortably below last Thursday's six-week high at $70.50. This marks a consolidation after rallying by over 8.5% from the mid-August low at $64.43, which was the lowest traded since mid June. The lift back to levels around $70.0 came as U.S. sanctions on Iran started to bite. The U.S. re-imposed sanctions on August 7 prohibiting Iran's purchases of U.S. dollars and precious metals, and will add a second round of sanctions on November 4, which will directly target Iran's energy sector. Even though the first round of sanctions didn't specifically target crude, preliminary trade flow data last week showed that Iran's crude oil and condensate exports are set to drop by 70 M barrels for the first time since April 2017 (according to Thomson Reuters Eikon).