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Christin Tuxen, chief analyst at Danske Bank, suggests that a continued uptick in global oil prices is setting the scene for markets following a week of thin Easter trading.

Key Quotes

“Notably, over the weekend, the US administration announced that it would not renew waivers on sanctions on Iranian oil exports. This effectively means that a range of countries that have been allowed to take up oil from Iran, despite the US withdrawing from the Iranian nuclear deal in May last year, will no longer be allowed to do so starting from 2 May this year.”

“While Saudi Arabia and the UAE reportedly aim to make up for a good deal of the 1.9 mb/d that Iran currently supplies, Brent crude oil rallied past USD74/bbl yesterday. Indeed, the US removal of waivers is just one of a string of recent supply concerns hitting the oil market.”

“Adding to strains, Iran has threatened to close the Strait of Hormuz – a key gateway for Middle East oil to the rest of the world.”