Crude Oil Prices Survive Late Scare to Settle Higher

Investing.com – WTI crude oil prices settled higher Thursday despite a sharp retreat into settlement amid an earlier report suggesting the United States was considering easing its tough stance on countries that import Iranian crude.

On the New York Mercantile Exchange for July delivery gained 69 cents to settle at $73.45 a barrel, while on London’s Intercontinental Exchange, fell 0.15% to trade at $77.34 a barrel.

The United States is prepared to work with countries on a case by case basis to help them cut their Iranian crude imports ahead of upcoming U.S. sanctions on Iran in November, a State Department official said on Thursday, as reported by Reuters.

“Our focus is to work with those countries importing Iranian crude oil to get as many of them as possible down to zero by November 4,” a State Department official told Reuters, adding: “We are prepared to work with countries that are reducing their imports on a case by case basis.”

The comments from the U.S. State Department has scaled back expectations somewhat that countries would slash their Iranian crude imports to zero, reducing the prospect of a global shortage in supplies.

A senior U.S. State Department official said Tuesday countries must cut their purchases of Iranian crude to zero by Nov. 4 or face U.S. sanctions.

U.S crude futures were also supported by data showing inventories at the Cushing, Oklahoma, delivery hub fell by 3.1 million barrels in the week through June 26, traders said, citing data from market intelligence firm Genscape.

Crude inventories across North American have come under pressure amid an ongoing production shutdown at Canada’s Syncrude, which has capacity to produce 350,000 barrels per day of oil.

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