The oil markets may have to buckle for greater disturbance, says strategist

Meanwhile, Washington continues to push up Tehran, with US President Donald Trump on Monday, marking Iran's Islamic Revolutionary Corps a terrorist organization – for the first time America has formally labeled another country's military a terrorist group.

Tensions between the two countries have sizzled since the United States withdrew from a nuclear power process for 2015, known as the joint comprehensive action plan, with Iran. The administration also reimposed sanctions against Tehran's urban exports, which struck the Iranian economy.

Recently commented statements by individuals such as US Secretary of State Mike Pompeo on "complete eradication of Iranian exports", Driscoll said that the goal was "unrealistic" and "possibly even delusional."

"When oil prices rise, it will be harder to keep that oil out of the market," he said. "It will find a withdrawal."

Driscoll said that in the "black swan incident" that Tehran loses patience with Washington and tries to close the Strait of Hormuz ̵[ads1]1; a critical sea passage for crude oil shipments, it would cause the loss of a "critical choke point where 30 percent of world oil and gas passes. "

Oil prices are scaled to new 2019 highs on Monday, with the international benchmark Brent Raw Futures contracting 1.1 percent paying $ 71.10 per barrel. US raw futures also increased 2.1 percent to settle at $ 64.40 per barrel.

In Asian morning trading on Tuesday, prices continued their upward March, with Brent's rising fraction of $ 71.16 and US raw futures 0.23 percent to $ 64.55 per barrel.

"When I was on the show a month ago, I said we should break $ 70 on Brent, but it will be short-lived," Driscoll said.

"Well, let me change that, I think this has got a little more legs," he said. "Libya has come back to games, Iran, Venezuela, it gets stronger.

– Reuters and CNBC's Natasha Turak contributed to this report.

Source link

Back to top button