On Tuesday oil prices slipped from its Tuesday high of above $70 a barrel, but is still at highs last seen since November 2014 with market expectations that U.S. President will abandon the Iran nuclear deal.
U.S. crude futures was down 0.9 percent from Monday’s settlement price and was trading at $70.11 per barrel on Tuesday.
Brent crude futures fell 0.7 percent from Monday highs of $76.34 to $75.64 per barrel.
Focus on U.S. Decision
Oil prices have been climbing based on the widely expected decision by market participants that the U.S. will withdraw from the Iranian nuclear deal.
Possible Disruption in Supply
Iran have been allowed to export more crude after sanctions were lifted. A withdrawal from the nuclear deal by the U.S. will likely disrupt global oil supply.
Oil industry analyst at research firm HIS Markit, Victor Shum said that the U.S. President’s decision on the Iran nuclear deal is the focus of oil markets.
Disruption in Oil Exports
He went on to say that the surge in oil prices suggests that the consensus in the markets is that there will be a disruption to Iran’s oil exports.
RBC Capital Market analysts said that even if the U.S. pull out of the deal, Iranian officials have said that their oil industry will continue to develop. However the analysts believe that in the event that the U.S. does decide to pull out exports could be cut by 200,000 to 300,000 barrels per day.
Venezuela Oil Production
According to news reports oil production in Venezuela has fallen following a move by ConocoPhillips a U.S. oil firm to take the assets of state run PDVSA, who were awarded $2 billion in arbitration. All adding to market pressures and the rally.