Oil Prices Rise On Middle East Tensions, Healthy Demand

Oil Prices Rise On Middle East Tensions, Healthy Demand

Furthermore, being fueled by Middle East tensions and dwindling crude output in Venezuela, oil prices rose on Tuesday.

West Texas Intermediate for May delivery added 6 cents to $63.60 a barrel on the New York Mercantile Exchange at 2:24 p.m.in Singapore.

The declines come on the heels of a deep economic crisis in the country.

"You still have geopolitical considerations and possible US action on Iranian sanctions. that is going to be relatively prompt, in May", Petromatrix strategist Olivier Jakob said. That would be the largest decline since early January if confirmed by the Energy Information Administration data scheduled for release on Wednesday. "Despite all the bearish US shale supply headlines, oil prices remain firm as the odds that the USA will pull out of the Iran nuclear agreement continue to run very high", said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA. "Iran nuclear tensions are not leaving the picture anytime soon, and the possible reimposition of US oil sanctions should keep the oil bulls charging near term". Salman was also scheduled to meet with other USA officials, according to CBS News (https://www.cbsnews.com/news/trump-saudi-arabia-crown-prince-mohammed-bin-salman-to-white-house-today-live-stream/).

President Donald Trump reportedly told European leaders they must "fix the awful flaws" in the Iran nuclear deal or the U.S. would refuse to extend its sanctions relief on the country.

"This week there will be. a pricing of some geopolitical risk with the crown prince going on a visit to the United States which is likely to provide a lot of headlines against Iran and the (sanctions) deal", Petromatrix analyst Olivier Jakob said, referring to Iran's pact that has removed sanctions on that country in return for limits on its nuclear program.

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"The presence of the Saudi Crown Prince.in Washington and his clear agenda to ramp up pressure on Iran, has for me, been the key driver.of oil, which rose strongly", said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

The International Energy Agency said last week that Venezuela, where an economic crisis has cut oil production by nearly half since early 2005 to well below 2-million barrels a day, was "clearly vulnerable to an accelerated decline", and that such a disruption could tip global markets into deficit despite soaring U.S. output. The global benchmark traded at a $3.77 premium to WTI for the same month.

On a simple supply versus demand basis, however, oil markets are facing the possibility of a renewed glut after being in a slight deficit for much of past year.

U.S. oil inventories data is expected over the next two days.

USA drillers added four oil rigs in the week to March 16, bringing the total count to 800, the weekly Baker Hughes drilling report said on Friday. It was the seventh increase in the rig count in eight weeks.

Brent sweet crude futures were at 67.66 dollars per barrel.

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