US and Saudi Arabia Raise Oil Prices

Oil prices in the United States are rising in response to negotiations between the United States and Saudi Arabia, discussing, among other things, Iran, which increases geopolitical risks in the markets.

In May, shipments on the NYMEX in New York are valued at $ 63.67 after a 13-cent increase. Brent for May delivery at ICE Futures Europe in London rose 15 cents to $ 67.57 a barrel.

On Tuesday (March 20), US President Donald Trump received the successor to the Saudi throne, Prince Muhammad Ibn Salman, in Washington.

President Trump has proposed that the United States withdraw from an international agreement limiting Iran's nuclear program. Such a decision would increase the risk of a reduction in oil exports from Iran due to possible sanctions.

If such sanctions were imposed, Iran's oil exports would be lower by 250-500 thousand barrels per day - experts estimate the consulting company FGE.

However, neither leaders announced progress on other disputes in the Middle East, including the war in Yemen, which is causing disastrous consequences among civilians, led by the isolation of Saudi Arabia by Qatar or the Israeli-Palestinian plan.

“Geopolitical risks and concerns are growing in the markets as the US and Saudi Arabia have the same interest in isolating Iran,” said Will Yun, raw materials analyst at Hyundai Futures Corp. in Seoul.

Meanwhile, information about the drop in US oil reserves appeared on the market - by 2.74 million barrels. Such data were presented on Tuesday by the independent American Fuel Institute.

On Wednesday (March 21), the US Department of Energy (DOE) will give a report on the state of fuel reserves in the US last week after 4:30 pm. Analysts expect oil reserves to rise by 3.25 million barrels.

On Tuesday, crude oil on the NYMEX in New York rose 2.2 percent to $ 63.40 a barrel, the highest since February 26. These were contracts for April, which expired on Tuesday.