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Crude Oil Gains on Concerns About Supply Disruptions

April 17, 2018 at 22:01 by Vladimir Vyun

Crude oil rose on Tuesday after swinging between gains and losses. Analysts provided a range of possible reasons for the rally.

Earlier, the commodity was rising due to the conflict in Syria. While the country itself is not a major oil producer, unrest and hostilities in the region could affect other oil producing countries. For now, though, it looks like the situation has calmed down.

Yet there were other potential supply disruptions like possible US sanctions against Iran due to its nuclear program and unrest in Venezuela. Meanwhile, there are speculations that the Organization of Petroleum Exporting Countries and its allies, including Russia, will maintain production caps at their meeting in June.

Now, traders wait for US supply data from the American Petroleum Institute and the Energy Information Administration. Analysts have predicted that the EIA report will show a drop by 0.5 million barrels last week following the substantial buildup by 3.3 million the week before.

Contract for delivery of WTI crude oil in May gained 0.66% to $66.66 per barrel as of 21:50 GMT on NYMEX today. Futures for delivery of Brent in June rose 0.38% to $71.69 per barrel on ICE.

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