On Tuesday, the 23rd of April 2019, both Brent and US crude breached their multi-months highs, after Washington had made an announcement to end all waivers for Iranian oil imports by May 1st, brightening the crude oil price outlook further amid an ongoing production cut of OPEC (Organization of Petroleum Exporting Countries), a 14-nation pact of oil exporting nations alongside stricter sanction on Venezuelan crude.
Nevertheless, according to multiple sources with knowledges regarding the issue, OPEC might raise their oil output, only if the 14-nation pact of oil exporting nation would experience higher demands while neutralizing any supply deficit resulted from the US sanction on Iranian crude.
Besides, the sources had also revealed that the de facto leader of OPEC, Saudi Arabia might raise output in May to balance crude oil price, yet it remained uncertain whether it was linked to Iran sanction. Apart from that, the US crude inventories had also risen in March to 6.86 million barrels from 3.1 million barrels a month earlier, which would likely to downsize crude oil price in a near-term outlook.
Concomitantly, a US official told yesterday that the US President Donald Trump had expressed sheer optimism over UAE and Saudi’s pledges to slash output in May, given Saudi and UAE’s close tie-up with Trump administration, which would likely to add further strains on to crude oil prices.
At Tuesday’s (April 23rd) market closure, US Intermediate crude futures winded down the day 1.1 percent higher at $66.30, after breaching an intra-day high of $66.66 a barrel, its best level since October 31st, while the UK crude had rounded the day off 0.6 percent higher to $74.51 per barrel, after touching a daily high of $74.73 a barrel, a level last witnessed during the early November last year.