UNITED STATES (OBSERVATORY) – Oil fell on Wednesday, shedding gains earlier in the session, after signs of more US crude supplies and an increase in Iranian exports ahead of a possible renewal of US sanctions on Tehran.
US crude futures for July delivery fell 16 cents to $ 72.97 a barrel by 1100 GMT after falling nearly three percent on Tuesday to a two-week low.
US crude <CLc1> rose 18 cents to $ 67.43 a barrel, but fell from a high of $ 67.85 a barrel.
Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), recovered as a major oil exporter in January 2016 after lifting international sanctions against Tehran in return for curbing Iran’s nuclear program.
But the United States has expressed doubts about Iran’s seriousness in imposing restrictions on its nuclear program and threatens US President Donald Trump to reinstate sanctions.
Iran’s oil ministry said oil exports stood at 2.6 million bpd in April, a record high since sanctions were lifted. China and India bought more than half of this amount.
US crude inventories rose 3.4 million barrels to 432.575 million barrels in the week ending March 27, according to a report by the US Petroleum Institute on Tuesday.