Oil Steadies as Traders Weigh Impact of Korea Summit, Iran Deal

Futures in New York slipped 0.4 percent, on course for a 0.7 percent drop this week. French President Emmanuel Macron earlier this week predicted President Donald Trump will exit the Iran agreement, while U.S. Defense Secretary Jim Mattis said Thursday a decision on a withdrawal hasn’t been made. North Korean leader Kim Jong Un and South Korean President Moon Jae-in agreed to finally end seven decades of hostile relations this year.

Oil this month touched the highest level in more than three years as speculation swirled over the potential breakup of the nuclear accord that Iran signed with world powers in 2015. The deal had lifted sanctions on the Islamic Republic, enabling it to boost oil production by about 1 million barrels a day. Investors are also watching global inventories amid signs that production cuts by the Organization of Petroleum Exporting Countries and its allies could continue to deepen while American output soars.

“The oil price should not fall in any significant way until the question of renewed Iran sanctions has been resolved,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt.
more at:  https://www.bloomberg.com/news/articles/2018-04-27/oil-holds-near-68-as-traders-await-trump-decision-on-iran-deal