Last month, the threat of U.S. sanctions on Iran drove oil prices to multiyear highs. Those sanctions kicked in on Monday - but oil prices have stopped climbing. In fact, they've fallen.
At the start of last month, as oil shipments from Iran declined, Brent crude prices, the international benchmark, breached the $86-a-barrel threshold for the first time in four years. West Texas Intermediate, the U.S. gauge, hit around $76 a barrel, also near a four-year high.
Those increases, though, seem to be the extent of the effects that the sanctions will have on oil prices. Since early October, Brent has fallen almost 16 percent, and WTI 17 percent. The sanctions, now being imposed, are unlikely to have more effects than that.
No comments:
Post a Comment