Oil futures continue to take a spike with more than USD$2 a barrel on Monday, a steep level not seen since November 2014, as Iran braces for the upcoming second wave of economic sanctions implemented by the US following the Islamic Republic's alleged violation of the 2015 Nuclear Pact, while a North American trade deal fosters growth in the region.
According to Reuters, Brent futures LCOc1 settled at its highest with close to $85 per barrel price earlier this week, which is up by USD$2.25 or 2.7 percent from the previous increase. Post-settlement trade sees contract continued to take an upsurge, rising to USD$85.45 a barrel.
This would be the first highest trade deal hitting above the USD$85 per barrel threshold since November of 2014.
U.S. light crude futures, CLc1, meanwhile, followed suit with USD$2.05 increase per barrel, closing at USD$75.30 a barrel.
Meanwhile, the US West Texas Intermediate (WTI) crude futures were also up by USD$1.66, or 2.3 percent, putting a hefty USD$74.91 per barrel price - the company's highest since July.
US Sanctions On Iran
As indicated over at Oil and Gas Investor, the high crude prices coupled with a stronger US dollar might hit the demand growth by 2019. As of the moment, the market's focus is on the looming sanctions of Washington on Iran, which is slated to take a full swing by Nov. 4 this year.
The US sanctions on Iran's oil industry could cripple the embattled nation's already struggling economy as it is designed to ban the sale of the crude exports from the world's No. 3 producer in the Organization of Petroleum Exporting Countries (OPEC).
An earlier report from this site pointed out predictions from market watchers and financial analysts indicating the possibility that the oil trade restrictions slapped on Tehran might send the Middle East country into recession, with at least 3.7 percent implosion to take place next year.
Prior to the Nov. 4 oil trade sanctions, the White House prohibits Iran from using US dollars for its global trading activities as well as the sale of its precious metals in the world market.
NAFTA Pact
Meanwhile, the US and Canada forged an economic alliance on Sunday with the goal to save the North American Free Trade Agreement (NAFTA) as a trilateral deal with Mexico, CNBC said.
Phil Flynn from Price Futures Group in Chicago was quoted by the news outlet saying that the NAFTA 2.0 deal could help curb down the rising prices as well as fosters economic growth not only for the two countries but for the entire North American region.
