U.S. Oil Prices Cross $70 for the First Time Since 2014

U.S. oil prices have crossed the $70 mark for the first time since 2014, and this increase may impact gasoline prices and other consumer goods. It is still unclear whether the rise in oil prices will slow the country's economic growth. Stock prices rose in the middle of the day on Monday, May 6, indicating that investors believe companies and consumers can withstand this level of oil price increase. The benchmark U.S. oil price rose by about 74 cents, or 1%, during the day in the New York market, reaching $70.46. Brent crude oil prices also reached about $76. Experts cite several reasons for the recent increase in oil prices, including the potential U.S. exit from the JCPOA and consequently a decrease in Iranian oil exports, a decline in Venezuelan oil production, and a reduction in oil reserves within the U.S. Concurrently with the rise in U.S. oil prices, the dollar's exchange rate against other currencies also increased, reaching its highest level against the euro since December. Meanwhile, the increase in oil prices led to a rise in the stock values of energy companies in European and American stock markets. The euro's exchange rate against the dollar slightly decreased, reaching $1.19 for the first time this year. One major reason for this is the decline in orders to the German industrial sector and the continued reluctance to invest in the euro market. Financial market experts say that with the increase in average interest rates in the U.S., the dollar's value against the euro and likely against the Japanese yen will continue to rise, and if Europe's economic growth rate is lower than expected, the euro's value against the dollar will decrease further. Informed sources told Reuters that speculation about a reduction in Venezuelan oil production has increased due to the American company ConocoPhillips' decision to transfer its investments in Venezuela's state oil company to other companies. Such a move will further decrease the production and export levels of Venezuela's state oil company. Other factors contributing to the rise in oil prices include predictions that Donald Trump will exit the nuclear deal with Iran. In that case, experts say Iran's ability to sell oil may be limited in the coming months.