Oil Rises More Than 2 Percent As Us Sanctions On Iran Squeeze Supply

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NEW YORK – Oil prices rose more than 2 percent on Tuesday as U.S. sanctions squeezed Iranian crude exports, tightening global supply despite efforts by Washington to get other producers to increase output.

Since spring when the Trump Administration said it would impose sanctions on Iran, crude traders have priced in a risk premium reflecting the supply shortages that may occur when exports from the third-largest OPEC member are cut. As the Nov. 4 date for imposing sanctions draws nearer, the premium has increased.

“The fear is that the sanctions could be so successful that it takes more oil off the market than the OPEC and non-OPEC producers can make up for,” said Andrew Lipow, president of Lipow Oil Associates in Houston.




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