MNA –Oil has risen towards $70 as a result of a drop in drilling activity in the US and concerns that Washington could reintroduce sanctions against Iran.
“The Iranian factor is going to be a very significant input for the next four weeks. It is going to be an underlying support for the whole month,” Olivier Jakob, an oil analyst at Petromatrix was quoted as saying by Reuters on Monday.
“U.S. drillers cut seven oil rigs in the week to March 29, bringing the total down to 797, the first decline in three weeks. The rig count is closely watched as an indicator of future U.S. oil output,” Reuters added.
The Reuters report went on to quote another expert Wang Xiao of Guotai Junan Futures as saying that the rising tensions between the United States and China is likely to reduce the prices again.