Oil Slips as OPEC Seen Able to Offset Iran Losses From Sanctions

Oil Slips as OPEC Seen Able to Offset Iran Losses From Sanctions

Oil Slips as OPEC Seen Able to Offset Iran Losses From Sanctions

"Oil prices could rise at least $10 (a barrel), with Brent approaching near $90", Akuta said.

Oil LCOc1 reached $78 a barrel on Thursday, its highest since November 2014, two days after President Donald Trump said the United States was abandoning an global nuclear deal with Iran and would impose new sanctions.

But while slogans of "Death to America" were few, many Iranians are sincerely angry over Mr Trump's decision and are siding with hard-liners who have warned to be suspicious of the West.

Ignoring pleas by allies, US President Donald Trump on Tuesday pulled out of an worldwide nuclear deal with Iran that was agreed in late 2015, raising the risk of conflict in the Middle East and casting uncertainty over global oil supplies.

The futures on US WTI crude oil with delivery in June fell by 0.11% to 71.28 Dollars per barrel.

On the bearish side some traders believe prices won't move almost as high because of rising USA production and the possibility that other suppliers from within OPEC will step up output in order to counter the Iran disruption.

"The oil market was underpinned in April by renewed geopolitical issues, tightening product inventories and robust global demand", OPEC said in its report.

Oil Slips as OPEC Seen Able to Offset Iran Losses From Sanctions

"OPEC, as always, stands ready to support oil market stability, together with non-OPEC oil producing nations participating in the Declaration of Cooperation", OPEC said, using its name for the pact on supply curbs.

"There is a good chance the current OPEC deal will end by end-2018, if not before", said Ed Morse, head of commodities research at Citigroup Inc.in NY.

OPEC's agreement is built to stretch as far as the end of 2018.

"With stocks falling quickly during the course of the next 18 months, we would expect continued upside pressure on crude oil prices and see Brent averaging $US75 a barrel in 2019 compared to $US70 a barrel this year", BoA analysts said.

The sanctions come amid an oil market that has been tightening due to strong demand, especially in Asia, and as top exporter Saudi Arabia and No.1 producer Russian Federation have led efforts since 2017 to withhold oil supplies to prop up prices.

The American president's withdrawal, as well as increasing investments into alternative energy, sent prices soaring last week to their highest level since 2014, the NZ Herald reported. Prices dropped 66 cents to $70.70 on Friday.

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