Oil hits March high, buoyed by Middle East tensions

Oil edges higher

Oil rises toward $63 as OPEC cuts weighed against US supplies

"Spot Brent crude oil prices averaged $3.36 per barrel more than WTI prices in 2017 compared with just $0.40 per barrel more in 2016, providing a price incentive to export USA crude oil into the worldwide market", said Matt Stanley, a fuel broker at Freight Investor Services global in a note.

Note: The news says an anticipation of 2.556-M bbl in Crude Oil inventories, a discrepancy of over 5-M bbl. May WTI crude, which becomes the front-Mont contract, tacked on $1.18, or 1.9%, to $63.31.

Both benchmarks posted a daily gain of more than three percent, and reached their highest level since February 2.

Soaring US output, as well as rising output in Canada and Brazil, is undermining efforts by the Middle East dominated Organization of the Petroleum Exporting Countries (OPEC) to curb supplies and bolster prices.

Saudi Arabia called the 2015 nuclear deal between Iran and world powers a "flawed agreement" on Monday, on the eve of a meeting between the Saudi crown prince and U.S. President Donald Trump.

We could see some profit-taking as crude oil approaches the pair of tops at $65.63 and $66.02.

Appetite for US crude is adding to the headache facing OPEC.


Innes also said tensions between Saudi Arabia and Iran, in addition to concerns over Venezuelan crude production, "continued to underpin prices and the markets have recovered soundly".

Heating oil futures rose 2.2 percent to finish at $1.9495 a gallon, their highest settle since late February.

If Trump decides to exit the deal under which global measures were removed on Iran in return for a curbing of its nuclear program, it would likely be welcomed by Saudi Arabia, which regards the deal as a boon for its regional foe.

In other energy trading, April natural gas rose 0.6% to $2.666 per million British thermal units. The resumption of sanctions could drag down oil exports from the Persian Gulf state by 250,000 to 500,000 barrels a day by the end of this year, industry consultant FGE said last week.

Crude prices have been.

The Energy Information Administration will issue its weekly update on USA petroleum supplies Wednesday. A Bloomberg survey ahead of the government report forecast stockpiles rose by 3.25 million barrels.

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