Oil sticking to high points, WTI getting comfortable around $71

Oil hits highest since Nov 2014 as Brent edges closer to $80

The prospects of a sharp drop in Iranian oil exports in the coming months due to renewed US sanctions following President Donald Trump's decision to withdraw from an worldwide nuclear deal with Tehran has lifted oil prices in recent weeks.

The biggest unknown for the oil market now is the impact of US sanctions on Iran, which are being reimposed after President Donald Trump abandoned an worldwide nuclear accord with the country, the world's fifth-largest oil exporter. "We're back to a situation that we did not anticipate of having to appeal to these traditional allies", she said.

OPEC production cuts and the potential of wide-reaching USA sanctions on Iran did little to prevent oil prices dipping further on Wednesday.

Spot crude oil cargo prices are at their steepest discounts to futures prices in years as sellers are struggling to find buyers for West African, Russian and Kazakh cargoes, while pipeline bottlenecks trap supply in west Texas and Canada.

Brent crude hit the highest level over the past three years shortly after US President Donald Trump announced the US was pulling out the nuclear agreement reached three years ago, and would re-impose its sanctions on the Islamic republic.

The US withdrawal from the 2015 nuclear deal with Iran and promises of new sanctions on the country could also lead to increases.

The re-imposition of pre-deal sanctions and the threat of secondary sanctions, that penalize countries that do business with Tehran or Iranian organizations, are expected soon.

Tusk: Trump 'helped European Union rid itself of its illusions'
Donald Tusk told reporters ahead the EU leaders' agenda dinner for the EU-Western Balkans summit set for Thursday in Sofia , Bulgaria .

Italy's Fanciful Coalition Draft Draws Investors' Incredulity-For Now
Italy already has an enormous debt worth more than 130 percent of annual output, second only to Greece in the EU. The policy program will probably be published Thursday, 5-Star said.

Senate narrowly passes net neutrality CRA, sending fight to the House
The United States Senate has just voted to restore net neutrality regulations , which the FCC voted in December to eliminate . Democrats in the Senate could prevail in a vote as they have at least 50 votes with all of their party on board, plus Sen.

Crude production continued to grow to record highs, rising 20,000 bpd to 10.72 million bpd last week, the EIA said, though weekly figures are considered less reliable than monthly data.

It is unclear how USA sanctions will affect Iranian oil.

Record output from the USA pushed non-Opec supplies up by 2.1 million bpd year-on-year to 59.4 million bpd. A common mistake by oil market analysts is to consider this combination of movements anomalous and an indication of a disconnect between the paper and the physical markets. Still, Goldman Sachs Group. said OPEC won't proactively replace the lost barrels, given its current narrative that the market isn't fully re-balanced.

Much of the Iran's oil exports head to Asia now, with over than 1.5 million barrels per day sent to the likes of China, Japan, South Korea, and India.

RBC's Croft said that the OPEC/non-OPEC deal was likely to be secure at least for the rest of 2018, however.

Total will not continue the SP11 (South Pars 11) project and will have to unwind all related operations before 4 November 2018, unless Total is granted a specific project waiver by United States authorities with the support of the French and European authorities. "For the last three, four, five months we've seen high turnarounds globally", a United States crude trader said, referencing maintenance works.

But OPEC and its cohorts may end up being victims of their own success. Bank of America said the markets risk reaching $100 per barrel by next year, while JBC Energy wrote that the probability of "a strong bull run in crude markets-potentially even flirting with triple digits" is growing.

Related news:

Hot News

isis-killer-beheading-video-story-top What time does Preakness start? Updated odds
May 17, 2018 - 05:16
Quip actually qualified for the Kentucky Derby, but his trainers made a decision to rest him up for the Preakness. Good Magic was second in the morning line at 3-1, and Quip got the shortest odds of the new shooters at 12-1.

isis-killer-beheading-video-story-top T20 2018: Mumbai beat Punjab by 3 runs
May 17, 2018 - 05:16
Keeping with Mumbai's modus operandi, Krunal Pandya and Pollard too showed no inclination to take their innings deep. After a five-minute delay due to a floodlight failure and a six-run 11th over, Krunal chipped a six over fine leg.

isis-killer-beheading-video-story-top Legislation to legalize sports betting expected in 2019
May 17, 2018 - 05:16
Sports betting, though, will remain illegal in Oklahoma unless the Legislature changes the law. But the ruling was not quite the vindication of state sovereignty that it appeared to be.

isis-killer-beheading-video-story-top Neymar Worried About Foot As He Prepares To Return From Injury
May 17, 2018 - 05:15
And Neymar also thinks moving to Real would boost his chances of winning the Ballon d'Or. Every year I fight to win everything.

isis-killer-beheading-video-story-top Deadpool 2 Targets $350 Million Worldwide Opening Weekend
May 17, 2018 - 05:13
This sequel is filled with references to comic book superheroes and pop culture in general that will make you choke in your seats. Despite the differences, Deadpool 2 still contains gory fighting scenes, hence it is only suitable for adults.

isis-killer-beheading-video-story-top The Bucks Are Bringing In Giannis Antetokounmpo To Recruit Mike Budenholzer
May 17, 2018 - 05:11
The person confirmed the agreement with the former Atlanta Hawks coach on Wednesday. Wojnarowski noted Budenholzer is "considered one of the NBA's best tacticians".

isis-killer-beheading-video-story-top Former Man Utd manager Moyes leaves West Ham
May 17, 2018 - 05:08
We aim to appoint a high-calibre figure who we feel will lead the club into an exciting future for our loyal supporters within the next 10 days".

isis-killer-beheading-video-story-top Antoine Griezmann secures 'dream' Europa League triumph with Atletico Madrid
May 17, 2018 - 05:07
Griezmann went on to add a second goal shortly after half-time with Gabi completing the scoring as the game entered stoppage time.

isis-killer-beheading-video-story-top Former student in custody after shooting at Dixon High School
May 17, 2018 - 05:07
The young man is now in custody and is receiving medical treatment for a non-life-threatening gunshot wound. Dixon High School in IL is on lockdown after shots were fired inside this morning.

isis-killer-beheading-video-story-top Turkish banker sentenced to 32 months in United States prison for sanction evasion
May 17, 2018 - 05:07
The Turkish government has fulminated about Zarrab and Atilla's cases, labeling them an attempted "judicial coup" on Erdogan. Victor Rocco, one of Atilla's lawyers, said his client would appeal his conviction, but called the sentence "fair".

isis-killer-beheading-video-story-top Michigan State Settles Sex Cases For $500 Million
May 17, 2018 - 05:06
She says she is also disappointed that a resolution hasn't been reached with other organizations such as USA Gymnastics. The university and lawyers for 332 victims announced the deal after negotiating privately with the help of a mediator.

isis-killer-beheading-video-story-top What non muslims need to know about Ramadan
May 17, 2018 - 05:04
Fasting during Ramadan is mandated among physically and mentally sane Muslims in fulfillment of one of the five pillars of Islam. Initially most of the Muslim majority countries followed the dates set for Ramadan by Saudi Arabia Authorities.

isis-killer-beheading-video-story-top Nine additional counts of felony child abuse added to Fairfield mother's charges
May 17, 2018 - 05:03
They have been placed in the care of relatives while meeting with investigators and being evaluated child welfare professionals. The house was a mess the day police returned their child because she had tossed everything around looking for her son, she said.

isis-killer-beheading-video-story-top Sherpa Kami Rita Sets Record with 22nd Successful Climb of Mount Everest
May 17, 2018 - 05:00
The 48-year-old Sherpa guide from Nepal has climbed the 29,035-foot peak almost every year since starting at 24 years old. He and his team started their expedition on Tuesday evening. "There are no reported injuries".

isis-killer-beheading-video-story-top Exploding Vape Pen Killed Florida Man, Autopsy Report Says
May 17, 2018 - 04:59
The owner of Lizard Juice, an e-cigarette retailer in Florida , said he does not think such vaping pens are "safe enough". Some e-cigarettes have built-in batteries while others have swappable batteries which are charged on an external unit.