Denmark's Torm says stops taking orders in Iran due to US Sanctions

Denmark's Torm says stops taking orders in Iran due to US Sanctions

Brent, the worldwide benchmark, rose as much as 1% at $79.47 per barrel around 8:30 a.m. ET.

Oil climbed to a three-year high near $79/bbl in London on heightened political risks in the Middle East following unrest in Gaza and the return of sanctions against Iran.

Despite these downward forces, the market retains support from OPEC and other producers' production cuts and US sanctions on Iran.

He also downplayed the impact of oil supplies from renewed US sanctions on Iran: "Don't worry about supply", he said, adding that this was not the first time an OPEC member had been in such a situation. Investors are watching whether OPEC and its allies such as Russian Federation intend to end output cuts and increase production if renewed American measures restrict the Persian Gulf state's exports.

Demand for oil drastically increased prices and has resulted in oil prices increasing by more than 70 per cent over the a year ago.

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US West Texas Intermediate (WTI) crude futures were at $71.09 a barrel, up 13 cents and also not far off their November 2014 high of $71.89 a barrel reached last week.

World oil prices have surged by more than 70 percent over the past year as demand has risen sharply but production has been restricted by the Organization of the Petroleum Exporting Countries, led by Saudi Arabia, and other producers including Russian Federation. Total volume traded was about 37% below the 100-day average. Prices on Monday gained $1.11 to close at $78.23.

Futures for September delivery rose 1.6% to 472.8 yuan a barrel on the Shanghai International Energy Exchange. The global benchmark crude traded at a $7.20 premium to West Texas Intermediate for delivery in the same month. The contract fell 1.2% on Monday.

Saudi Arabia pumped 9.868 million barrels a day last month, the lowest since January 2017, according to OPEC's monthly report. The numbers provided by the kingdom indicate that it could increase production by about 190 000 barrels a day and still respect the limit agreed with fellow members if it decides to compensate for the loss of Iranian barrels.

Rosneft's oil and gas condensate output in the first quarter was down 1.2 percent year on year because of the global supply pact with OPEC, the company said on Monday.