Oil prices rise as Opec signals it will maintain production cuts

Oil prices rise as Opec signals it will maintain production cuts

Friction between US-ally Saudi Arabia and Iran was also running high last week after attacks on two Saudi oil tankers off the UAE coast and another on Saudi oil facilities inside the kingdom. The US benchmark reached $63.81 earlier, the highest since May 1.

USA crude inventories rose unexpectedly last week to their highest since September 2017, Energy Information Administration data showed.

Zarif added that though President Donald Trump has said he is not seeking war, "some that have sat around him" are pushing such a conflict.

OIL started the week strongly after Saudi Arabia and other Opec+ members signalled intentions to keep supplies constrained for the rest of the year, while USA tensions with Iran ratcheted up as President Donald Trump threatened the country in a tweet. Following that, the latter suspended its commitments earlier this month, threatening to resume production of enriched uranium. That wouldpotentially bring it closer to being able to develop a nuclear weapon, something Iran insists it has never sought.

Estimates that Russian Federation is finally within its quota under the OPEC+ deal come days before a panel of ministers from OPEC and Russian Federation are scheduled to meet this weekend in Jeddah, Saudi Arabia, to discuss the state of the oil market and review compliance with the cuts.

The advisory, issed by the FAA on Thursday and circulated late on Friday, said the warning came amidst "heightened military activities and increased political tensions in the region which present an increasing inadvertent risk to US civil aviation operations due to the potential for miscalculation or mis-identification".

Saudi Arabia sees no need to boost production quickly now, with oil at around $70 a barrel, as it fears a price crash and a build-up in inventories, OPEC sources said earlier.

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Saudi Arabia accused Iran of ordering the pipeline attacks, targeting "the security of oil supplies. and the global economy".

U.S. investigators have also accused Iran or the groups it supports of using explosives to damage four tankers off the United Arab Emirates earlier this month. Iran denies arming or training the rebels, who control much of northern Yemen, including the capital, Sanaa.

Reacting to the dissents among the U.S. officials over the situation with Iran, Zarif took to twitter late on Friday and wrote, "With the B-Team doing one thing and Trump saying another thing, it is apparently the United States that doesn't know what to think".

Bahrain warned its citizens on Saturday against travel to Iraq and Iran and asked those already there to return "immediately" for their safety, state news agency BNA said. "The ball is in Iran's court".

Al-Jubeir also noted that an investigation, led by the UAE, into the tanker incident is underway. There was no immediate statement by the State Department about the call. If ministers don't agree to an extension next month, the production cuts that ended the worst oil-industry downturn in a generation will expire.

WTI fell slightly in post-settlement trade following industry group the American Petroleum Institute's data showing that US crude stockpiles rose unexpectedly last week, by 2.4 million barrels, compared with analysts' expectations for a decrease of 599,000 barrels.

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