Investing.com - Oil prices rose on Wednesday morning in Asia as traders worried that the U.S. will re-impose sanctions on major exporter Iran.
Crude Oil WTI Futures for June delivery were trading at $67.56 a barrel at 11:10PM ET (03:10 GMT), up 0.46%. Brent crude futures for June delivery, traded in London, were up 0.19% at $73.27 per barrel.
Iran is the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC). The nation re-emerged as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran’s nuclear program.
Iran’s oil exports hit 2.6 million barrels per day (bpd) in April, a record since the lifting of sanctions, with China and India buying more than half of Iran’s oil.
However, U.S. President Donald Trump has threatened to re-impose sanctions due to doubts over Iran’s sincerity in implementing the curbs.
Trump will decide by May 12 whether to restore U.S. sanctions on Tehran, which would likely result in a reduction of its oil exports and tighten global supplies.
Despite this threat, soaring U.S. supplies prevented oil prices from rising further.
U.S. drillers added five oil rigs in the week to April 27, bringing the total count to 825, the highest level since March 2015. The rising rig count indicates higher crude production to come.
U.S. crude production has also soared more than 25% since mid-2016 to a record 10.59 million bpd. Only Russia currently produces more, at around 11 million bpd, which the U.S. is expected to surpass by 2019.
Geopolitical uncertainties remain the most significant driver in oil price sentiment, while a backdrop of OPEC-led supply cuts and strong global demand continues to support markets.
Meanwhile, Crude Oil WTI Futures for September delivery were down 0.45% at 440.50 yuan ($69.29) per barrel at 11:10PM ET (03:10 GMT) on Wednesday.