Crude Oil Prices Settle at 3-Week Highs Ahead of Inventory Data

Investing.com – Crude oil prices settled at a three-week high as the prospect of supply disruptions amid Middle East tensions offset expectations for a rise in U.S. crude supplies for the fourth-straight week.

On the New York Mercantile Exchange for May delivery rose 2.2% to settle at $63.40 a barrel, while on London’s Intercontinental Exchange, rose 2.1% to trade at $67.41 a barrel.

Concerns that President Donald Trump may toughen sanctions against Iran amid a visit from Saudi Crown Prince Mohammad Bin Salman this week raised the prospect of Middle East supply disruptions, fuelling a rally in oil prices.

Saudi Arabia upped the ante against Iran Monday, calling the 2015 Iran nuclear deal “flawed agreement”. If Trump does scrap the deal, it could lead to re-imposition of secondary sanctions on Iran, pressuring countries to reduce their purchases of Iranian crude.

Some also cited the move higher was based on traders positing their portfolio ahead of April WTI contract slated for 2:30 ET.

Yet, crude prices eased from session highs of $63.98 a barrel heading into settlement as investors shifted focus to U.S. data expected to show crude supplies continued to build.

The American Petroleum Institute weekly inventory report is expected later on Wednesday after US markets close, while the US Energy Information Administration issues its supply totals Thursday at 10:30 a.m. ET.

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