22.8 C
New York
Friday, October 22, 2021

Oil Prices Rise On Global Supply Risks

Oil Prices Rise On Global Supply Risks© Reuters. Oil prices rose on Wednesday morning

Investing.com – Oil prices rose on Wednesday morning in Asia amid ongoing risk of supply disruptions.

 for May delivery were trading at $66.85 a barrel in Asia at 11:30PM ET (03:30 GMT), up 0.50%. for June delivery, traded in London, were up 0.52% at $71.95 per barrel.

A potentially spreading conflict in the Middle East, renewed U.S. sanctions against Iran and falling output caused by the political and economic crisis in Venezuela have triggered a sense of high risk of disruptions to oil supplies, lifting oil prices.

The Middle East is the world’s most important crude exporter and tension in the region tends to put oil markets on edge.

Meanwhile in the U.S., crude inventories fell by 1 million barrels last week, to 428 million barrels, according to a weekly report by the American Petroleum Institute (API) on Tuesday.

Oil markets are further supported by the supply restraint led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia. The pact runs until the end of 2018 but there is growing confidence that the cooperation will be extended.

OPEC production is currently lower than expected as a result of large declines in Venezuelan output caused by the political and economic turmoil in Venezuela.

Lower inventories and healthy demand combined with geopolitical risks have pushed oil prices near three-year highs.

However, lower prices are expected next year due to rising U.S. crude output, which has jumped by a quarter since mid-2016 to over 10.5 million barrels per day (bpd).

U.S. crude oil production is expected to rise to 11.44 million bpd in 2019, making the U.S. the world’s largest oil producer, surpassing Russia which currently pumps out around 11 million bpd.

Meanwhile, for September delivery were down 0.73% at 428.20 yuan ($68.10) per barrel at 11:30PM ET (03:30 GMT) on Wednesday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

10,830FansLike
12,893FollowersFollow
756FollowersFollow
- Advertisement -

Latest Articles

Popular Articles