US Imposes More Sanctions on Iran
June 17, 2022
The energy markets are headed into a three-day holiday weekend in the United States and that normally gives rise to traders getting out of their short positions, which means then most buy to close the positions and this should support crude oil prices into the long weekend.
US gasoline prices at retail level and adjusted for wages are now at the highest since 2013. Wage-adjusted gasoline prices are in the 94th percentile for all months since 1994, up from the 60th percentile at the end of 2021. At this level, demand destruction should be evident within the next few months. All this is from John Kemp of Reuters.
The US imposed more sanctions on Iran yesterday and this makes it clear that the two sides are not making progress. This news likely ends the idea that the Iran nuclear deal can be salvaged and right along with that the idea that more barrels of crude oil from Iran could come into the market.
China added crude oil to storage tanks at the fastest rate in two years in May as the amount of processed by its refining sector fell by the most in a decade.