Oil prices edged up for a second day on Wednesday, recovering from a drop below $50 a barrel, after weekly data showed a fall in U.S. crude inventories, while a stronger dollar tempered gains. The dollar rose to its highest in over three months after a voting member of the U.S. Federal Reserve's policy-setting committee expressed support for an interest rate hike in September. A stronger dollar tends to undermine crude oil by making it more profitable for non-U.S. investors to sell it. Growing oversupply, slowing demand from China and the prospect of crude flooding onto the market from Iran after Tehran's deal with the West over its nuclear program have knocked 21 percent off the oil price this quarter.
Futures in New York dropped as much as 1.1 percent after rising 0.5 percent earlier. Israeli Prime Minister Benjamin Netanyahu said his country has documents that prove Iran had a program to build atomic bombs. That’s raising concern Trump may pull the U.S. out of a nuclear accord between Iran and world powers, a move that energy consultant FGE says could cut the Persian Gulf nation’s 2019 oil exports by 700,000 barrels a day.
FGE Chairman Fereidun Fesharaki said Trump is likely to restore sanctions on Iran, meaning buyers would have to cut their crude purchases from the country in 180 days. The nation’s exports could drop by 200,000 to 500,000 barrels a day this year, leading to higher oil prices, he said.
In the U.S., crude stockpiles probably added 900,000 barrels last week, according to a Bloomberg survey. If confirmed by government data on Wednesday, that would be the second consecutive weekly gain in inventories.
more detail at: https://www.bloomberg.com/news/articles/2018-05-01/oil-holds-gains-as-iran-weapon-claims-seen-threatening-nuke-deal