Oil prices fall on rising USA crude inventories,…

Prices are likely to be unpinned all week because the deadline for a decision on Iran is May 12.

SINGAPORE, May 7 (Reuters) - U.S. oil prices rose above $70 a barrel on Monday for the first time since November 2014 while Brent crude prices climbed to fresh highs, as a deepening economic crisis in Venezuela threatened the country's already tumbling oil supplies.

Oil prices have been climbing partly because of expectations that US President Donald Trump will abandon the 2015 Iran nuclear deal, which allowed Tehran to export more crude, reports CNN. "Investors are anxious about supplies after Iran took a tough stance in its response to the United States", Wang Xiao, Head of Crude Research with Guotai Junan Futures said, adding prices may fall if expectations for new sanctions ease. And one of the factors for the WTI crude price being lower than Brent is the domestic shale production, which has been booming.

If the United States imposes sanctions that will prevent those who do business with Iran from accessing the United States financial market, this could also mean that other countries will also stop buying Iranian oil.

If sanctions were re-imposed on Iran, it could once again increase the amount of oil it produces, in complete contrast to other members of the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation, who have kept a tight control on global output to buoy up the prices.

More news: Game-changer Daniel Arzani called into Socceroos' preliminary World Cup squad
More news: Rouhani: Plans in place for Trump move on nuclear deal
More news: Lebanese voters elect new parliament

This is raising concerns over a possible disruption in crude oil supply from the Middle East. But it's the Iran question that's driving short-term trading, experts say. The market has priced in more than a 50 percent probability that the U.S.'s waiver against Iran won't be extended, but there's still "significant upside" should the waiver lapse, the bank said. "I'm not telling you what I'm doing, but a lot of people think they know".

United States light crude settled up $1.29 at $69.72 a barrel.

But Shum said the impact is unlikely to be as severe as the multinational sanctions imposed on Iran in 2012. Meanwhile, America's European allies continue to back it, saying the deal has been essential to reining in Iran's nuclear program. Iran also doesn't support higher oil prices, with its oil ministers saying they wanted reasonable oil prices, well below $70.

"Investors are anxious about supplies after Iran took a tough stance in its response to the United States", Wang Xiao, Head of Crude Research with Guotai Junan Futures said, adding that prices may fall if expectations of new sanctions ease.

Recommended News

  • UEFA ban Simeone from Europa League final

    UEFA ban Simeone from Europa League final

    UEFA said its disciplinary panel imposed a four-game suspension for Simeone's conduct at Arsenal in the semifinal first leg last week.
    Apple iPhone X Becomes World's Best-Selling Smartphone in Q1 2018

    Apple iPhone X Becomes World's Best-Selling Smartphone in Q1 2018

    In the coming months, Apple's iPhone X selling would come down as people would be having many more choices available. That would be a slight increase from the 50.8 million iPhones sold in the same quarter previous year .
    Spirited Brighton beat Man United to ensure Premier League stay

    Spirited Brighton beat Man United to ensure Premier League stay

    Seagulls boss became the first Brighton boss to win the Manager of the Month award in the Premier League earlier this season. A second-half Pascal Gross goal saw Brighton claim a memorable win and priceless three points against United on Friday.
  • James floats as Cavs stun Raptors

    James floats as Cavs stun Raptors

    Anunoby drained a three-pointer to tie it at 103 with eight seconds left before James reached into his extensive bag of tricks. Toronto was 20 of 25 at the line, won the rebounding battle 41-36 and turned the ball over 17 times in the contest.
    1 killed, 3 missing after quake  strikes Polish coal mine

    1 killed, 3 missing after quake strikes Polish coal mine

    So far this year, four miners have been killed at different coal mines, according to the State Mining Authority. The state mining supervisor said the quake was a type that can occur in coal mines deposits are removed.

    Common Thinks the Country Has More Serious Concerns Than Kanye West

    Speaking in the candid interview, the Gold Digger singer said: 'When you hear about slavery for 400 years ... for 400 years? West may say he loves everybody, but after his comment about slavery being a choice , not everyone at TMZ was loving him.
  • Billionaire Warren Buffett Calls Bitcoin 'Rat Poison Squared'

    Billionaire Warren Buffett Calls Bitcoin 'Rat Poison Squared'

    The figure make the holding company Apple's third-largest shareholder, behind Vanguard Group and BlackRock. It actually led Berkshire to a net loss in the quarter, even though operating profit climbed.
    Israel strikes Hamas position in Gaza

    Israel strikes Hamas position in Gaza

    Hamas' military wing however blamed Israel in a statement and said a "heinous crime has been committed against our fighters". Israel says it's defending its sovereign border, including nearby communities, and that soldiers only target instigators.
    US Navy's new command puts Russian Federation  in the crosshairs

    US Navy's new command puts Russian Federation in the crosshairs

    In June 2017, Moscow announced it would keep a 15-ship task force in the Eastern Mediterranean, operating out of Syria. The revived command will be stood up on July 1, and will initially have eleven officers and four enlisted personnel.
  • Cristiano Ronaldo sends message to Man United legend Sir Alex Ferguson

    Cristiano Ronaldo sends message to Man United legend Sir Alex Ferguson

    Cristiano Ronaldo, who was signed by Sir Alex as an 18-year-old in 2003, said: "My thoughts and prayers are with you, my dear friend".
    Beware! This new WhatsApp bug can crash your Android phones

    Beware! This new WhatsApp bug can crash your Android phones

    When a WhatsApp user taps on part of either message, the hidden symbols expand, overwhelming WhatsApp and the Android OS. Initially, this message just looks like any other message but potentially it is capable to affect your smartphone .
    Sensex, Nifty turn cautious ahead of US Federal policy outcome

    Sensex, Nifty turn cautious ahead of US Federal policy outcome

    HCC shares bounced back and gained over 5 percent to close at Rs 18.45 after management commentary w.r.t the Lavasa issue. The market breadth was in favour of declines with about three shares falling for every two that rose on the BSE.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.