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Commenting on the recent news on the rise in Oil prices as US sanctions are imposed on Venezuela, as reported in City AM, as well as the prospect of further sanctions on Iran,  Mihir Kapadia, CEO of Sun Global Investments said:

“The prospect of further Iran sanctions coupled with the disputed election results in Venezuela have helped to firm oil prices. President Trump and the White House has made clear that any new Iran deal would require the country to stop enriching all uranium and halt support for militant groups in the region.  Iran’s government has rejected these demands, increasing the chance that the US could impose severe economic sanctions on the country. Sanctions would reduce oil supply. The possibility of a drastic fall in Iran’s output has helped to support oil prices in recent months.

 Oil prices were also pushed higher by the disputed election in Venezuela. The US has promptly responded with sanctions that seek to greatly restrict investment in  debts issued by the Venezuelan government or  Venezuelan agencies, although the US did not ban the purchase of oil itself. Analysts will be watching closely to see how the situation develops.”

His comment was featured in City AM Online.

Latest Update: Nov 08, 2020