Oil Prices Rise on Geopolitical Turmoil Despite Rising US Inventories

May 15 15:05 2019 Print This Article

Oil prices are rising on Wednesday despite higher US weekly crude inventories. The Energy Information Administration (EIA) reported a gain of 5.4 million barrels but rising tensions in the Middle East forced US diplomats to withdraw from Iraq putting more emphasis on a showdown between America and Iran.

The attacks on Saudi tankers and Iran ending its nuclear commitments have escalated turmoil in the region with the US ready to apply pressure in Tehran and evacuating its embassy in Iraq due to security concerns.

Supply disruptions have kept crude higher, even as the US has ramped up production. The OPEC+ agreement to limit output is the biggest factor, but geopolitical disruptions like the US sanctions against Iran and Venezuela and the armed conflict in Libya are added to the situation in Saudi Arabia.

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