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.
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.