Economics

Crude Oil Takes a Breather After Surging on Iran Sanctions

Bank of America says $100 possible next year on supply risks
WTI crude futures slip back below $71 a barrel Friday

Oil prices are likely to trend higher, says BMO Global Asset Management’s Morgane Delledonne.(Source: Bloomberg)

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By Robert Tuttle

May 11, 2018 at 12:23 AM UTC

Updated on

May 11, 2018 at 7:36 PM UTC

This article is for subscribers only.

Oil slipped, narrowing a second weekly gain, as traders consider the potential supply impact of renewed U.S. sanctions on Iran.

Futures in New York dipped back below $71 a barrel Friday, trimming this week’s increase to 1.4 percent. Saudi Arabia is ready to work with other producers to mitigate any impact of a shortage after U.S. President Donald Trump decided to exit a 2015 nuclear accord and hit OPEC’s third-largest producer with sanctions intended to curb its exports. U.S. crude production pushed to a fresh all-time high as explorers put the most drilling rigs to work in 3 1/2 years.