30-08-2018 04:30 PM
Oil prices climbed on Thursday, widening gains on growing proof of stern disruptions to crude supply from Iran and Venezuela and after a drop in U.S. crude inventories.
Crude Oil was trading at $69.58 at the time of preparing this report.
According to Mr.Ponmudi, Market expert and Managing Director at Enrich Commodities – “Approval against Iran isstarting to impact oil supply, boosting crude prices."
Iranian crude exports isexpectedto drop to just over 2 million barrels per day (bpd) in August, against a peak of 3.1 million bpd in April, as importers bow to American pressure to cut orders.
The Organization of the Petroleum Exporting Countries, of which Iran is the third-biggest producer, will converse in December if it can pay compensation for a sudden fall in Iranian supply after approval starts in November.
Crude exports from crisis-struck OPEC member Venezuela have also fallen sharply, halving in recent years to around 1 million bpd.
Official U.S. oil inventory data on Wednesday assisted the bullish trend.
The Energy Information Administration said - U.S. commercial crude inventories dropped by 2.6 million barrels in the week to Aug. 24, to 405.79 million barrels, more than estimate,
The International Energy Agency (IEA) has cautioned of a narrowing market towards the end of the year, due to a mixture of falling supply in countries such as Iran and Venezuela, and strong demand chiefly in Asia.