MARKET WATCH: Oil prices climb awaiting US sanctions on Iran

Oil & Gas Journal: Oil prices rose on the New York and London markets May 14, supported by signs that major oil producers remain committed to reducing world oil supply and awaiting clarification on how renewed US sanctions against Iran will affect world oil supply.

“The Saudis are signaling that they would be relaxed with the scenario in which they temporarily overtighten the market,” said Paul Horsnell, the head of commodity research at Standard Chartered. “Coupled with no signs of new supply coming on, demand remaining strong as well as the geopolitical turmoil in Iran and you have the conditions for this push up towards $80/bbl,” he said of Brent crude prices.

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