On Wednesday, April 23, oil prices experienced a significant increase, linked to the introduction of new U.S. sanctions against Iran, a reduction in oil supplies in the States, and softer remarks from Donald Trump regarding Federal Reserve policy.
This is reported by Finway
Brent crude futures rose by 55 cents (0.8%), reaching $67.99 per barrel, while WTI increased by 54 cents (0.9%) to $64.21, according to Reuters.
On Tuesday, the U.S. imposed new sanctions against Iranian businessman Seyed Asadollah Emamjomeh and his corporate network, which is responsible for the export of Iranian liquefied gas and crude oil worth hundreds of millions of dollars. This was reported by the U.S. Department of the Treasury.
“The market was unsettled by the new restrictions on Iranian energy resources, which also supported prices,” noted Priyanka Sachdeva, a senior analyst at Phillip Nova.
The increase in oil prices was also bolstered by expectations of progress in trade negotiations between the U.S. and China. Trump stated that tariffs could be reduced after a deal is reached, but they will not be completely eliminated.
Additionally, the American president abandoned the idea of dismissing Federal Reserve Chairman Jerome Powell, which also calmed the markets.
Furthermore, support for prices came from preliminary data showing a reduction in U.S. oil supplies by 4.6 million barrels for the week, according to the American Petroleum Institute. Analysts had forecast a decrease of 800,000 barrels, with official data set to be published later on Wednesday.
Overall, investors are closely monitoring U.S. trade policy, which directly impacts the prospects for global economic growth and oil demand.