Oil Halts Decline as Tillerson’s Departure Boosts Iran Risks

Futures rose 0.5 percent in New York. Prices seesawed on Tuesday after President Donald Trump fired Tillerson, whom he had disagreements with over key foreign policy issues. The move could have implications for U.S. sanctions on Iran, which could impact the latter’s oil industry and exports, Facts Global Energy and Royal Bank of Canada warned.

“The risk is now much higher that President Trump will not waive the sanctions when it is time to do so in May, thus derailing the deal,” said Bjarne Schieldrop, chief commodities analyst at SEB AB.

Crude has struggled since hitting a three-year high in January. A broader market slump initially drove prices lower, while surging American production and increasing inventories continue to remain a challenge to the Organization of Petroleum Exporting Countries and its allies’ attempts to drain a global glut by curbing output.

Tillerson’s replacement Mike Pompeo, currently the CIA director, is known as something of an Iran hawk, RBC chief commodities strategist Helima Croft said Tuesday. He will likely push for the U.S. to exit the nuclear deal with the Persian Gulf nation in May, and could advocate for tougher sanctions on Venezuela, which might boost oil prices, she said.
more at:  https://www.bloomberg.com/news/articles/2018-03-13/oil-halts-losses-as-industry-data-shows-u-s-fuel-inventory-drop