Economics

Short-Term Oil Glut Softens Iran Sanctions Impact -- For Now

  • Traders say there are unsold cargoes in Africa, Europe, Asia
  • Market structure shows short-term oversupply that will clear

Oil Is Above $70 on Iran Uncertainty

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Oil prices have risen on the back of U.S. sanctions on Iran, but a short-term glut in the physical market is softening the blow -- for now. The market, however, is starting to price a more dire situation by year-end.

Oil refiners have plenty of crude at hand right now, with unsold cargoes in north-west Europe, the Mediterranean, China, and West Africa, according to physical traders who asked not to be named discussing market movements.