Risk factors spill over to Tuesday rally in oil prices

An expected dip in oil inventory levels in an already-tight market, coupled with lingering geopolitical risk, pushed oil prices higher in Tuesday trading.

“European and Asian buyers of Brent are pricing in the risks and realities of the fallout from sanctions on Iran to increased tensions in the Gaza strip as well as the inability of traditional Brent oil producers to fill that void,” Phil Flynn, the senior market analyst for the PRICE Futures Group in Chicago, said in a daily emailed newsletter.

The price for Brent crude oil, the global benchmark for the price of oil, is up more than 5 percent since U.S. President Donald Trump walked away from a U.N.-backed agreement that limited Iranian nuclear activity in exchange for relief from sanctions. That decision could eventually sideline about 1 million barrels of oil from a market with no spare capacity…

 

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