Oil price rises above $75 per barrel

Oil price rises above $75 per barrel

Oil price rises above $75 per barrel

The announcement "did not bring anything new to the table", and the market thus shed some of the earlier gains, says Olivier Jakob of PetroMatrix, adding that "It shows how much the market has already priced in the expectation that Trump will not extend the waivers" on US sanctions against Iran.

Prices put in their high of the day when Israeli Prime Minister Benjamin Netanyahu stocked the geopolitical fires by accusing Iran of lying about its past nuclear intentions.

US President Donald Trump is facing a May 12 deadline to decide whether to restart US sanctions against Iran, potentially ending the 2015 deal that halted sanctions in order to end Iran's nuclear program.

Brent crude oil futures were down 40 cents at $73.46 U.S. a barrel mid-morning Wednesday, slipping further from the November 2014 high of $75.47 reached on Tuesday.

"But if the U.S.is not part of the deal, then there really is no deal", Yawger said.

USA drillers added five oil rigs this week, bringing the total count to 825, the highest level since March 2015, General Electric Co's Baker Hughes energy services firm said.

U.S. West Texas Intermediate (WTI) futures were up 80 cents on the day at $68.90 a barrel.

The recent Dollars strength has negatively impacted Gold as the intensity of the USD correction caught most traders by surprise.

A rise in United States government borrowing costs to their highest since 2013 this week has tempered some investor appetite for risk, but analysts said they believed Brent crude may have another attempt at marking new 2018 highs above $75 a barrel. The global benchmark crude traded at a US$6.43 premium to June WTI.

Concerns that the US may reimpose sanctions on Iran helped underpin the markets this week as this represents a threat to supply. The contract fell 0.4 per cent last week.

"There are worries that Iran's oil exports could fall by about 1 million barrels per day from current levels", said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo.

Saudi Aramco, the world's biggest crude exporter, appointed new board members with experience in worldwide oil and petrochemical businesses as it plans a possible overseas share sale in what could be a record initial public offering. Crude stockpiles at the biggest USA storage complex rose by an estimated 1 million barrels last week, according to a forecast compiled by Bloomberg. US crude production rose by 46,000 BPD the previous week, to 10.59 MMBPD.

Hedge fund managers have amassed a near-record position of 1.405 billion barrels in petroleum and show no signs of rushing to take profits despite the rise in prices to their highest level since 2014.

The dollar against a basket of currencies hit its highest since mid-January.

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