Oil prices surged yesterday after President Donald Trump said the United States will withdraw from a 2015 nuclear accord with Iran and re-impose sanctions.
Benchmark U.S. crude oil jumped USD1.94, or 2.8 percent, to $71.00 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.67, or 2.4 percent, to $69.06 per barrel [yesterday]. Brent crude, which is used to price international oils, gained $2.01, or 2.7 percent, to $76.86 per barrel in London. It lost $1.32, or 1.7 percent, to close at $74.85 per barrel.
Iran, the world’s fifth-largest oil producer, will have to decide whether to follow the U.S. and withdraw or try to salvage what’s left with the European countries. Supply constraints could push oil prices higher, as evident in an increase yesterday. That could hurt growth in net importing countries like Japan and Germany. (More on p14-15)
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