Oil dips on signs of ample supply despite OPEC cuts, Iran sanctions

Source U.S. Energy Information Administration Short Term Energy Outlook May 2018

Brent, the worldwide benchmark, rose as much as 1% at $79.47 per barrel around 8:30 a.m. ET.

US light crude closed 35 cents, or 0.5 percent, higher at $71.31 a barrel, also not far off the day's peak at $71.92, its highest since November 2014.

The bottleneck in North America likely contributed to a 4.9 million barrel rise in U.S. crude oil inventories, to 435.6 million barrels, that the American Petroleum Institute reported on Tuesday.

However, the tailwinds for crude oil now vastly outnumber the headwinds, so prices will likely continue upwards in the coming days, especially in light of the escalation in Israel following the move of the US embassy from Tel Aviv to Jerusalem that ignited protests in Gaza, prompting an immediate military response from the IDF.

Turmoil in the Middle East and USA trade sanctions against major oil producer Iran have recently supported crude.

Source U.S. Energy Information Administration Short Term Energy Outlook May 2018
Source U.S. Energy Information Administration Short Term Energy Outlook May 2018

The IEA said that the overall market balance was "continuing to tighten", and it lowered its estimate for 2018 global oil demand growth to 1.4 million barrels per day from its previous estimate of 1.5 million.

The United States has announced it will impose sanctions on Iran over its nuclear program, raising fears that markets will face shortages later this year when trade restrictions take effect.

Stronger oil prices are also spilling into other markets.

Refinery runs in March also jumped to a record as import quotas for the small independent refiners-the so-called "teapots"-were increased and refinery margins stayed healthy". With Japan and South Korea already indicating that they will aim to attain a waiver from the U.S. in order to continue buying Iranian crude, the impact of Trump's actions will rest on how far he goes in comparison with Obama's previous sanctions.

The Secretary-General, Organisation of the Petroleum Exporting Countries (OPEC), Mohammed Barkindo, attributed the rising oil prices to efforts by OPEC and non-OPEC countries to rebalance the market through production freeze. China's crude oil imports in the first quarter increased by 7 percent on the year to around 9.09 million bpd-a rise of nearly 595,000 bpd on average compared to Q1 2017, according to Reuters calculations.

Nikka Bella's Reaction to John Cena's Heartbreaking Plea on 'Today'
I'm at a point in my life where I kind of lost me and I want to find me and work on me. Bella added, "I truly hope one day that we can work it out and get back together".

Related news:

Hot News

isis-killer-beheading-video-story-top Pirates' Marte leaves due to side injury
May 16, 2018 - 15:45
He didn't appear to be hobbled on the basepaths, but he was replaced by Sean Rodriguez in center field between innings. Kyle Crick and Richard Rodriguez completed the seven-hitter for Pittsburgh's major league league-best seventh shutout.

isis-killer-beheading-video-story-top Karnataka polls 2018: Faulty VVPAT machine stalls voting in Hubli
May 16, 2018 - 15:41
It was 65 per cent in 2008 and 2004, 69 per cent in the 1989 and 1994 and 69 per cent in the 1990 elections, he said. The election in two constituencies, Jayanagar and Rajarajeshwari Nagar, both in Bengaluru has been postponed.

isis-killer-beheading-video-story-top UEFA prepares to fight Saudi-backed Club World Cup plan
May 16, 2018 - 15:26
The 24 clubs would share a pot of approximately £1.5 billion with the victor earning £100 million and a guaranteed £50 million just for participating.

isis-killer-beheading-video-story-top Parents of Parkland victims announce run for school board seats
May 16, 2018 - 14:59
Alyssa Alhadeff and Alaina Petty , both 14, were killed in the Valentine's Day shooting at Parkland , Florida's Marjory Stoneman Douglas High School .

isis-killer-beheading-video-story-top GOP governor candidates try to reach undecided voters
May 16, 2018 - 14:23
Wolf, 69, has a bachelor's degree from Dartmouth College and a Ph.D. from the Massachusetts Institute of Technology. Where do the GOP candidates stand on the issues? He'll face Democrat Brent Ottaway, who ran unopposed, in the fall.

isis-killer-beheading-video-story-top Police lathicharge as voters protest delay in poll process
May 16, 2018 - 14:17
The deceased workers and supporters are from the Bharatiya Janata Party (BJP), the CPI-M and the ruling Trinamool Congress (TMC). Repolling will be held from 7 am till 5 pm. "The counting will take place tomorrow (on May 17)", the SEC officials said.

isis-killer-beheading-video-story-top Tamil Nadu DGE 12th /HSC Result 2018 Declaring On 16th May @ tnresults
May 16, 2018 - 14:07
The TN Board HSC +2 Result 2018 will be declared by the Directorate of Government Examination, Tamil Nadu from their DPI Complex. Students come across the Tamil Nadu 12 examinations can check the results from TN Results official portal, tnresults .nic.in.

isis-killer-beheading-video-story-top Pompeo seeking 'strong cooperation' with Europeans on Iran
May 16, 2018 - 14:06
The conditions Washington has set for Tehran to meet are utterly unrealistic. We've got more newsletters we think you'll find interesting.

isis-killer-beheading-video-story-top White House reportedly nixes cybersecurity coordinator position
May 16, 2018 - 13:54
Ted Lieu, D-Calif., called elimination of the federal cybersecurity coordinator's job a "tragedy" on Tuesday. Politico first reported the elimination of the job on Tuesday.

isis-killer-beheading-video-story-top Palestinian baby dies from tear gas inhalation: ministry
May 16, 2018 - 13:14
Israel's use of live fire has drawn worldwide criticism but the Israeli government says it is protecting its borders. The mother of 8-month-old Palestinian infant Laila al-Ghandour cries after her daughter was killed.

isis-killer-beheading-video-story-top Ramadan delayed as new moon not sighted
May 16, 2018 - 12:46
It's common practice across many Muslim-majority nations for liquor stores and hotels to curb the sale of alcohol during Ramadan . It's seen as a way to physically and spiritually detoxify by kicking impulses like morning coffee, smoking and midday snacking.

isis-killer-beheading-video-story-top Nokia X6 launch today, teaser highlights iPhone X display style
May 16, 2018 - 12:37
Sensors on the phone include Compass/ Magnetometer, Proximity sensor, Accelerometer, Ambient light sensor and Gyroscope. At the time of writing, HMD has not confirmed any details about whether the Nokia X6 will be coming to global markets.

isis-killer-beheading-video-story-top Do you know how much Sonam Kapoor's wedding ring cost?
May 16, 2018 - 12:21
No matter what you say, if there's anyone who deserves to be called a fashionista, it has to be Sonam Kapoor . Mahira had announced that she will be representing the beauty brand she endorses in a social media post.

isis-killer-beheading-video-story-top Chelsea must show ambition with new signings, says Hazard
May 16, 2018 - 12:05
He said: "That's why I'm taking my time". "I want good players, because I want to win the Premier League next season. The forward, one of the world's best players, would not commit to a time-frame for making a decision on his future.

isis-killer-beheading-video-story-top European Court Orders Russia to Compensate Navalny for Passport Restrictions
May 16, 2018 - 11:50
Navalny had previously been detained in January after joining a rally calling for a boycott of the presidential election. Navalny's lawyer Vadim Kobzev said the trial had "clearly political motives" as Putin begins his fourth Kremlin term.