Oil Rises To March High On Middle East Tensions, Venezuela Concerns

Global Oil Demand To Rise In The Year – IEA

Stocks in February were 44 million barrels above that level, OPEC said, the closest the group has come to the target.

Analysts also pointed to the nomination of Mike Pompeo as new U.S. Secretary of State as a risk to oil markets, given that he fiercely opposed the Iranian nuclear deal as a member of Congress.

Oil hit a six-week high on Wednesday, closing in on a 3-year peak set in late January, on a surprise decline in USA inventories, strong compliance on OPEC production cuts, and persistent concern related to the Iran nuclear deal.

Falls on global share markets helped cap gains.

Saudi Arabia is threatening an arms race with Iran.

He pointed out in a note that "Spot Brent crude oil prices averaged $3.36 per barrel more than WTI prices in 2017 compared with just $0.40 per barrel more in 2016, providing a price incentive to export USA crude oil into the global market" - a scenario he says will cause headaches for the Organization of the Petroleum Exporting Countries (OPEC), Russia, and their allies as they struggle to make headway in year two of their production cutback deal. But with the hardening stance of the United States towards Iran, most investors were reluctant to sell oil aggressively.

More news: Donald Trump Jr. had affair with 'Apprentice' contestant Aubrey O'Day

Compliance with a global deal to cut oil supply hit a new high in February, a joint OPEC and non-OPEC committee estimated, suggesting a rise in the price of crude has not weakened commitment.

PVM's Varga said Venezuela was a potential source of supply disruption, but he said the bigger challenge for OPEC and its allies was ensuring their efforts to balance the market through output curbs was not undermined by rising production elsewhere.

The report further explained that Canada is the leading destination of American crude, adding that the U.S. has also been exporting more to Asia, which for long has been a major market for the Organisation of Petroleum Exporting Countries (OPEC), and Russian Federation.

Data released by the U.S. Energy Information Administration (EIA) on Wednesday morning showed a surprise 2.6 million barrel draw in crude inventories.

Bearish concerns have largely been fueld by surging USA crude output.

"On the back end of the Fed meeting, the dollar is getting under pressure, and that is going to work as a reverse correlation to crude oil prices", said Bob Yawger, director of energy futures at Mizuho in NY.

Related News:



Most liked

Israel Says It Destroyed Syrian Nuclear Reactor in 2007
The International Atomic Energy Agency deemed it, "very likely" the site, "was a nuclear reactor that should have been declared". The Israeli military declassified internal "top secret" intelligence reports, in Hebrew, some of them partly redacted.

China fully confident in achieving 2018 economic targets: Premier Li
Li, 62, was re-elected last Sunday for second five-year tenure by China's rubber-stamp parliament. "We hope trade will be balanced".

Shooter dead, 2 students injured in Great Mills High shooting
Gunman killed The shooter was injured and taken to the hospital, where he later died , officials said at a news conference. Teachers' union leaders issued statements Tuesday saying more policies must be changed nationwide to keep schools safe.

Former teen actress alleges Steven Seagal sex abuse at hotel audition
The actress who is married to Ellen DeGeneres tweeted that Seagal unzipped his trousers during an audition with her. He told me how important it was to have chemistry off-screen as he sat me down and unzipped his leather trousers .

Assault accuser Summer Zervos allowed to sue Donald Trump
The decision may also complicate Trump's effort to dismiss allegations from various women about his behavior. Trump could be asked under oath about his past treatment of women.

Sex And The City's Cynthia Nixon to run for governor
She lauded the stars's accomplishments as an entertainer and activist, but maintained that she lacks experience to be governor. Nixon would be the first woman elected to New York's highest office as well as its first [known] LGBTQ governor.

Lalu Prasad in hospital after health complaints
The fifth case relating to fraudulent withdrawal of Rs 139 crore from the Doranda treasury in Ranchi is pending with the court. His elder son Tej Pratap Yadav along with senior RJD leaders and hundreds of party supporters reached the hospital.

Abe's popularity falls as document-altering scandal continues
There have been nightly protests around Mr Abe's office over the past week demanding his resignation. Japanese PM Shinzo Abe saw his support tumble as public anger continues to rise over cronyism.

Donald Trump congratulates Vladimir Putin on election, leaders look to meet soon
Later commenting on the possible meeting, Trump told reporters "we will probably get together in the not too distant future". Trump "emphasized the importance of denuclearizing the Korean Peninsula", the White House added in a separate statement.

New 'Avengers: Infinity War' trailer assembles Marvel's mightiest heroes
Another online ticket seller, Atom Tickets , recorded the same results with Infinity War's presales. Vue said, "there are no plans for a Marvel Marathon ahead of the Avengers: Infinity War release".

Male birth control pill shows promise
They believe that DMAU lowers the hormones needed to produce sperm enough to prevent men from getting their partner pregnant. The low levels, Page said , were consistent with effective male contraception shown in longer-term studies.

Actress Cynthia Nixon Announces Run for NY Governor
Republican leaders, meanwhile, have been coalescing behind Dutchess County Executive Marc Molinaro as a candidate, with state Sen. She noted that for the past 17 years, she's been "fighting for better schools, better health care, and LGBTQ equality".

UK wins Brexit transition deal in return for Irish vow
The transitional period will begin from Brexit day 29 March 2019 and is created to smooth the path to the future permanent relationship.

Watford defender Miguel Britos eager to forget Liverpool thrashing
BBC pundit Garth Crooks fears that Salah could go the same way as many other Premier League stars and be tempted by a move to a European giant.

United Kingdom 'Anticipated' Expulsion Of Moscow Diplomats
Moscow has denied any involvement in the attempted murder of former Russian double agent Sergei Skripal and his daughter. Russia's response has also targeted the British Council, which promotes cultural ties.