Iran’s Oil Minister Sees Easy Way for OPEC+ to Extend Output Deal

Iran’s Oil Minister Sees Easy Way for OPEC+ to Extend Output Deal

Michael Cohen, head of energy markets research at Barclays, believes crude will rise slightly higher to an average of $73 per barrel this quarter: "U.S".

In other bullish news, on Tuesday, a US official said three of eight countries granted waivers by Washington to import oil from Iran have cut imports to zero.

Oil prices ticked higher on Thursday, with Brent hovering near the $70 mark despite weekly USA oil data showed a surprise build in crude inventories and record production.

The rig count in the U.S.

"As long as we don't see a major build with the DoE crude oil inventories, we could see a clean move higher", Moya said.

Oil inched toward the $70-a-barrel mark in London and then stumbled Wednesday, after a report showed USA crude supplies rising by the most since January and production reaching a record.

Brent futures climbed to a high of $69.96 on Wednesday morning, before falling slightly to $69.68.

This price level is very close to the price that Saudi Arabia is reportedly targeting to put under the Brent oil price, but is several dollars higher than what President Trump is generally comfortable with. "The Saudis have over-complied with the deal, and it would have all been in vain if they were to throw in the towel now", ING's Patterson said at the end of last week.

Oil prices have been supported for much of 2019 by efforts by OPEC and allies such as Russian Federation, who have pledged to withhold around 1.2 million barrels per day of supply this year.

On the oil supply side, the US government is considering additional sanctions against Iran that would target areas of its economy that have not been hit before, a senior Trump administration official told reporters on Monday.

Russia, the biggest non-Opec producer in Opec+, has yet to reach its production-cutting target. The Energy Information Administration is expected to show the USA oil inventories dropped last week.

Crude is being lifted along with equities, which gained as US and Chinese officials prepared to resume negotiations in Washington to resolve differences over trade.

The United States and China said they made progress in trade talks that concluded on Friday in Beijing, with Washington saying the negotiations were "candid and constructive" as the world's two largest economies try to resolve their trade war.

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