Energy Preview: Crude Soars More Than 3% On US-Iran Trade Concerns

WTI Crude Oil soared sharply after the US State Department signalled that the Trump administration will take a stiff approach to cutting off Irans oil exports. This firmed up the sentiments after oil had eased following the increase in margins on the commodity by the Chicago Mercantile Exchange (CME). The major global exchange has raised NYMEX crude oil future margins effective June 26, 2018. The margin for August 2018 contract has been raised to $ 2750 per contract from $ 2550. The exchange also raised gasoline futures maintenance margins for September to $ 3200 per contract from USD3100 earlier. The Trump administration is expecting oil buyers to completely cut off purchases of Iranian supplies in early November. The WTI Crude oil futures added more than 3% and are currently trading at $ 70.84 per barrel, up 0.44% on the day. MCX Crude oil futures closed at Rs 4814 per barrel, up 3.35% on the day. Asian equities are mostly trading higher though oil may see some correction ahead of the weekly EIA inventories data today.