Concerns regarding supply shortages deepen… US, EU and Russia stripped of preferential status as most-favoured country
International oil prices rose on the news of the suspension of the Iran nuclear deal and the impact of additional sanctions on Russia from the West.
According to the Korea National Oil Corporation on the 12th, the price of West Texas Intermediate (WTI) traded the day before closed at $109.33 per barrel, up $3.31 per barrel from the previous day, and Brent crude at $112.67, up $3.34. Dubai crude from the Middle East closed at $110.49 per barrel, down $4.84 per barrel from the previous day.
Oil prices rose as concerns regarding a supply shortage intensified following news of the suspension of negotiations to restore the nuclear deal with Iran. As Russia, one of the parties to the Iran nuclear deal, is trying to link Western sanctions once morest it with the Iran nuclear deal, the nuclear deal, which was in the final stages, is in danger of being canceled.
It is known that Russia has requested written guarantees from the United States to ensure cooperation with Iran is not hindered by Western sanctions related to the invasion of Ukraine.
Rousseff Borrell, the European Union’s high-ranking foreign affairs and security policy representative, said, “External factors require a temporary suspension of the Iran nuclear deal.” He also said he would continue to communicate with all parties to overcome the current situation and finalize an agreement.
The United States, together with the G7, has decided to deprive Russia of most-favored-nation treatment under the Permanent Normal Trade Relations (PNTR) with Russia. As a result, the basis for imposing high tariffs on Russian products has been laid.
The European Union (EU) also announced the removal of its most-favoured country preferential status to Russia and imposed additional import restrictions on Russian steel and other products.
News of an increase in US oil rigs limited the gains. Oil development service company Baker Hughes announced that the number of U.S. oil drilling rigs was 663, an increase of 13 from the previous week, as of the 11th, the highest level since April 2020.
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