Prices for oil has slackened in the middle of the week, and thus partly trimmed the previous gains. Quotes got stronger early this week driven by the decision of Washington not to ease Iranian sanctions to some players.
According to the market data, futures for WTI oil decreased to some $65.95; Brent futures dropped to $74.39 and keep sliding further. Year-to-date oil prices remained positive posting a 45% and 38% increase respectively.
The hikes in the oil market took place at the start of the week once the US President Donald Trump stated that Washington would not renew Iranian sanctions exceptions for countries that import Iranian oil.
As a result, this decision actually gives free rein to the USA to take measures against companies or financial institutions that source oil from Iran.
The expiry date of the current exceptions is May 2.
For reference, Donald Trump agreed to make certain exceptions for 8 countries in 2018. As a result, the latter managed to maintain imports of Iranian oil after the sanctions were resumed.
It should be mentioned that the market reportedly anticipated another scenario and expected a renewal of the exceptions. This time, the American leader said that the cartel might ramp up production to offset lack of supplies from Iran, Venezuela and Lybia.
Meanwhile, Iran is going to maintain oil exports in line with the country's objectives regardless of the US sanctions. As Iran's head Ali Khamenei noted Washington would fail to succeed, while Iran would keep shipping oil as it had been planned.