Oil prices continued to rise Wednesday after estimates showed US inventories fell more-than-expected, as API estimates showed oil inventories fell by 11 million barrels to 449 million in the week ending July 19th as well as continued concerns about supplies as tensions with Iran increased.
Where Iran threatened to cut its imports from Brazil unless it allowed the re-supply of at least two Iranian ships off the coast of Brazil, in reference to the global repercussions of the US sanctions imposed on the Islamic Republic.
Iran's ambassador to Brasilia, Syed Ali Sagin, told Brazilian officials on Tuesday that his country could easily find new suppliers of maize, soybeans, and meat if South America refused to allow ships to refuel. Brazil exported about $ 2 billion to Iran a year, mostly commodities such as corn, meat, and sugar. Tehran buys one-third of Brazilian maize exports.
"I told the Brazilians that they have to resolve the issue, not the Iranians," Saghian said in a rare interview at the Iranian embassy in Brasilia. "If it is not resolved, the authorities in Tehran may want to make some decisions because this is a free market and there are other countries."
Oil prices rose this week amid rising tensions in the Middle East after Iran seized a British-flagged tanker in the Strait of Hormuz on Friday. On the trade front between China and the United States, CNBC reported that US officials will travel to Beijing in Sometime between next Friday and August 1st.
CNBC also said Washington was considering canceling tariffs in exchange for Beijing making the deal legally binding, but it could take at least several months.
Oil contracts
- Brent crude for September delivery rose 0.4% to $ 64.09 a barrel, boosting gains after climbing yesterday at $ 63.83.
- West Texas Intermediate crude futures rose 0.5% to $ 57.04 a barrel after rising yesterday to settle at $ 56.77. At 8:59 am CET.
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