Sopuruchi Onwuka

The US Department of Treasury weekend announced new sanctions on Iran, targeting 10 individuals and 27 commercial entities as nuclear negotiations seemingly hit a roadblock after Tehran rejected the idea of transferring its inventory of enriched uranium.

Ad >>>

More sanctions on Iran and wobbly Russia-Ukraine negotiations dashed hopes of more stable oil market prices which surged by more than $3 to over $66 per barrel at the weekend.

Market reports from London’s Intercontinental Exchange (ICE) showed that Brent futures recorded weekly gain after markets were buoyed by the prospect of demand rebound expected from the outcomes of the prevailing US-China trade talks.

But failed US-Iran and collapsed Russia-Ukraine peace talks also raised geopolitical risk premium as a wave of sanctions remains in the works to choke out more supplies from Russia.

In the middle of the ongoing uncertainties, Saudi Arabia slashed its July prices for Asian customers by $0.20 per barrel for lighter grades and by $0.10 per barrel for Arab Medium, back to May levels, citing healthy demand and low regional stocks. 

Analysts had expected bigger price cuts from Saudi Aramco.