Global oil supplies robust enough to cut Iran's exports -Trump memo

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USA light crude was 60 cents higher at $71.56 a barrel, also close to its highest since November 2014.

OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices. The recent change has given its price a 5.04% lead over SMA 50 and -9.09% deficit over its 52-week high.

The surge in oil prices comes at a time of tight supply amid record Asian demand and voluntary output restraint by the Organisation of the Petroleum Exporting Countries and non-OPEC producers, including Russian Federation.

China's oil demand growth has so far this year exceeded expectations, and Goldman Sachs, for example, says that growth could be even "higher than now estimated".

The so-called Saudi Vision 2030 is aimed at generating more growth from the non-oil sector.

Final data for the country's April crude imports data will be released by state-run Korea National Oil Corp (KNOC) later this month.

"In 2012 the reduction in Iranian crude production and exports was around 1 million bpd", Wittner said. The contract fell 1.2% on Monday. South Sudan oil production has fallen from 500,000 to 130,000 barrels per day.

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President Donald Trump ordered the federal government to significantly reduce the amount of petroleum and petroleum products purchased from Iran. This has helped boost company's profits too - with several oil and gas producers and refiners among the biggest gainers on Wall Street over the past month.

The supply is greater in the U.S. were production has now seen a large increase in production bringing the total of barrels produced per day to 10.7m.

Rising prices, however, have another effect: They call forth efforts to find more supplies.

Further US drilling for new outputs put a lid on prices, with US drillers establishing 10 oil rigs in the week to May 11, raising the total count to 844, the highest level since March 2015.

US crude prices are at the steep discount to Brent as a more than 25 percent rise in USA crude production to 10.7 million barrels per day has left the American market well supplied.

Another industry player who seems is indifferent to the Iran situation is Dharmendra Pradhan, oil minister for India: he told Bloomberg television that he expects "reasonable" oil prices following sanctions against Iran and that his country as an emerging major economy is open to crude imports from any and all sources. This domestic production increase will have a significant moderating influence on future oil prices. The average price in Tennessee now sits at $2.62 per gallon.

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