Crude Prices Jump As U.S. Ends Iranian Import Waivers – 22 April, 2019

On Monday, the U.S. stated that countries who purchase oil from Iran must stop doing so by May 1st or be subjected to sanctions in hopes to cut off Tehran’s revenues which have greatly impacted oil prices over the last six months, causing them to sky rocket on fears of a possible supply cut. Before the U.S. imposed sanctions on Iran, exports were at 2.5 million barrels per day, dropping roughly 1 million barrels per day after the U.S. re-imposed sanctions. A $50 billion lifeline annually in oil revenues could be cut should Iran not curtail missile tests and nuclear program. In its highest since November, international benchmark Brent crude oil rose to $74 per barrel as Saudi Arabia and other OPEC countries increased supply. U.S. oil peaked at $65.92 per barrel, their highest since October 2018.