Oil tops $75, highest since 2014 OPEC meeting that led to pump war

Oil rose on Tuesday above $75 a barrel to its highest since November 2014, supported by OPEC-led production cuts, strong demand and the prospect of renewed U.S. sanctions on Iran.

“Prices are being driven up by tight supply due to high production outages in Venezuela plus the cuts implemented by OPEC and Russia,” said Carsten Fritsch, analyst at Commerzbank. “What is more, demand appears robust.”

The United States has until May 12 to decide whether to quit a nuclear deal with Iran and reimpose sanctions against the third-largest producer in the Organization of the Petroleum Exporting Countries, tightening global supplies.

OPEC’s supply curtailments and the threat of new sanctions are occurring as demand in Asia, the biggest oil-consuming region, has risen to a record.

The supply cut has virtually achieved its stated goal of reducing inventories in developed economies to their five-year average, but OPEC has shown little sign yet of wanting to wind down the deal.

The latest U.S. inventory figures are expected to show a 2.6-million-barrel drop in crude stocks.
more at: https://www.reuters.com/article/us-global-oil/oil-tops-75-highest-since-2014-opec-meeting-that-led-to-pump-war-idUSKBN1HV03J