Oil Gains as U.S.-Saudi Talks Raise Risk of Iranian Crude Curbs - Bloomberg

Oil Gains as U.S.-Saudi Talks Raise Risk of Iranian Crude Curbs - Bloomberg:

"Oil extended gains as investors assessed geopolitical risks with speculation that the U.S. president and Saudi Arabia’s crown prince discussed countering the influence of Middle East producer Iran. Futures rose 0.2 percent after climbing to the highest level in more than three weeks on Tuesday. Donald Trump hinted at a withdrawal from a deal curbing Iran’s nuclear program as a U.S. visit by Saudi Arabia’s Mohammed Bin Salman began. Such a decision would raise the risk of the OPEC member’s oil exports being curbed by sanctions. Meanwhile, industry data was said to signal an unexpected decline in American crude inventories last week. The specter of conflict involving giant producers is jolting prices, which have traded in a $4-range since mid-February. With the Organization of Petroleum Exporting Countries and its allies concluding that the market will re-balance by the end of September, Citigroup Inc. predicts oil’s recent “sideways” move is unlikely to last. Still, investors will be wary of U.S. supplies, which have threatened to undermine OPEC’s efforts to eliminate a global glut."



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