USA crude, gasoline inventories rise unexpectedly

USA crude, gasoline inventories rise unexpectedly

USA crude, gasoline inventories rise unexpectedly

But speaking to a Reuters reporter on Tuesday, one unnamed OPEC source said the group is considering lifting those limits sooner than anticipated, in part because of the rising price of oil.

The OPEC with its allies has curbed production since January 2017 to get rid of a supply glut that in mid-2014 led to a price collapse.

The price for Brent crude oil was up 0.95 percent as of 9:17 a.m. EDT to $79.97 per barrel, making at least its second run on the psychological threshold of $80 per barrel since Trump's decision on Iran.

Global inventories have been broadly falling. "U.S. Secretary of State Pompeo demanded that Iran halt all uranium enrichment and give nuclear inspectors access to the entire country", ANZ said in a note. Currently, the price is sitting right on the neckline and a break under it could be the trigger that begins a drop down towards the main support line, currently at $76.45.

The price has also been affected by rising geopolitical tensions that could dent global output just as demand is set to hit 100 million barrels per day in the final quarter of this year, according to the International Energy Agency.

OPEC may decide to raise oil output as soon as June as Venezuelan output collapses, US sanctions against Iran loom, and after Washington raised concerns that the oil rally was going too far, OPEC and oil industry sources familiar with the discussions told Reuters.

In addition, market participants fear that the Organization of countries-exporters of oil (OPEC) can in June to increase production because of the risks associated with Venezuela and Iran.

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While WTI was briefly at $72 US, Canadian oil companies have also seen their prices rise. Output in the South American nation fell to just 1.43 million barrels per day in April, down almost 700,000 bpd from 2016 levels.

The API reported a build in gasoline inventories for week ending May 18 in the amount of 980,000 barrels-in contrast to the 1.388-million-barrel draw that analysts had expected.

Oil has been easing from its 2018 top as OPEC says it intends to raise production to compensate the potential loss from Venezuela and Iranian output.

The price for Brent crude oil is up 5 percent since Trump's announcement.

For the first time in more than five years, Saudi Arabia and other oil producers are feeling the political pressure from consumer nations.

Crude imports rose 558,000 b/d last week to 8.159 million b/d, while exports dropped 818,000 b/d to 1.748 million b/d.

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