Oil rises $1 after new sanctions on Iran

Oil prices rose on Thursday after the United States issued new Iran-related sanctions and renewed tensions in the Middle East countered strength in the dollar. Brent crude futures settled up $1.22, or 1.72 per cent, at $72 a barrel. The US West Texas Intermediate crude (WTI) contract for April expired on Thursday, and settled up $1.10 or 1.64pc at $68.26. The more actively traded WTI May contract settled up $1.16, or 1.73pc at $68.07. The US on Thursday issued Iran-related sanctions, targeting entities including for the first time a Chinese “teapot”, or independent refinery, and vessels that supplied crude oil to such processing plants. China is the largest importer of Iranian oil. Teapot refiners are private Chinese refineries that are the primary purchasers of Iranian oil. Iran produces more than 3 million barrels per day of crude oil. “We were looking for some kind of catalyst to move and that was the ticket that pushed us back towards the high,” said Phil Flynn, senior analyst with Price Futures Group.