New Year did not seem to be quite good for the international oil market. With the rise in the geopolitical issues across Iran, WTI and Brent declared oil prices as $60/barrel after a long time.
The anti-government cries in the country led to such high oil prices. As per the Schork Report, which was released on January 2, 2018, these protests are more related to the economic issues in cities like Tehran and the approach is quite different than the one which took place in 2009.
Till now death of 14 people and arrests of 450 protestors have been reported. This protest is considered to be most serious in recent years and the prime leaders of Iran blame the United States agents for this crisis. As per the Iranian leader of Islamic Republic, Ayatollah Ali Khamenei, the US infused weapons, cash, political ideas and intelligence has misled the people.
On the other hand, the growing tension over North Korea is having an increasing influence over the already strained relationship between Russia, United States and China. As per reports from Reuters over the past few months Russia has sent fuel filled tankers in the guise of cargoes through sea ways. If this report is proved to be true, this will be considered to be a violation of United Nation’s protocols.
Even though there is no solid evidence of such assistance, this incident has already raised the eye brows of the US leaders as US is very strict regarding the Pyongyang.
The oil transfer to North Korea also had an impact on China. South Korea has recently seized two such tanks full of oil, which were being sent to North Korea via sea. United States have tried to blacklist such efforts of sending fuel to North Korea but China has stood against such actions.
All these actions have ultimately led to an increase in oil price, at least in the short run.