Oil prices rose to 2019 highs early on Tuesday, the day after the US said that investors of Iranian oil should stop buying the commodity by May 1 or face sanctions.
Brent crude futures (BZ=F) were at $74.53 (£57.34) per barrel, up 0.66% from the last session, continuing a consistent rise year-to-date.
On Monday, the White House announced that waivers for China, India, Japan, South Korea and Turkey would expire in May, in a bid drive down Iran’s oil exports to zero. This would, in turn, deny the government its main source of revenue.
While it looks like a move from Donald Trump’s administration is likely to continue driving up oil prices this year, investment bank Goldman Sachs says that it will actually have a limited impact on prices and that it still expects declining prices into 2020 due to better supplied markets next year.
“While we acknowledge the near-term upside price risks, we reiterate our fundamentally derived Brent price trading range of $70-75 per barrel for the second quarter of 2019,” said the bank in a client note yesterday.