Oil prices gained on Monday

Oil prices rose again on Monday after crude imports to China rose to record high. On MCX, crude for delivery in May contracts was up by 0.23 percent or Rs 10 to Rs 4,426 per barrel in a business turnover of 13,904 lots. It is expected that this rise in crude oil futures was largely due to raising of bets by participants in the domestic markets. After the US sanctions against crude exporters Iran and Venezuela, the market is experiencing a tightened supply resulting is higher prices. The global oil market is expected to remain tight. US President Donald Trump said on Thursday that he doesn’t want to involve United States in a war with Iran. The market is also waiting for the decision of the Organization of the Petroleum Exporting Countries (OPEC) and other producers on whether to continue with supply cuts that have resulted in boosted prices more than 30 per cent so far this year. Few days ago, The United States firstly imposed sanctions on Iran in November 2018 and wanted all countries to stop importing oil from Iran but Iran defied the sanctions and continue to export oil. Now US took a step further and imposed sanctions on all major 8 countries who will import oil from Iran. US has also imposed sanctions on Venezuelan oil exports later, that further disrupt crude supply in the global market.

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