The oil price extended its recent gains on Tuesday as Brent crossed $ 75 for the first time since the end of 2014 as tensions between Saudi Arabia and Yemen heated up.
Speculation that US sanctions on Iran will be reintroduced in May has also raised crude oil futures as they could contribute to a tightening of global oil supplies.
June West Texas Intermediate Crude
CLM8, + 0.57%
closed on the New York Mercantile Exchange by 54 cents, or 0.8%, at $ 69.1
Brent for delivery in June
LCOM8, + 0.51%
the global benchmark, rose 32 cents, or 0.4%, to $ 75.03 a barrel after a high of $ 75.27, on course for the highest Compensation since November 2014. Prices have been profitable for the past five consecutive sessions.
The two contracts rose higher on Monday, erasing earlier declines after reports reported that a Saudi air strike killed the leader of the Houthi rebels in Yemen. This would increase the potential for disruption of crude oil supply in the Middle East, an important oil producing region.
Check out: Global Oil Surplus May Soon Become a Scarcity
Regardless, growing fears that the US might impose sanctions on Iran contributed to a rise in oil prices. The Trump government has until 12 May to decide whether to extend the sanction waiver associated with Iran's nuclear deal or reintroduce sanctions.
"You can always count on President Trump's unpredictable unpredictability, but at the moment all bets on the USA that are in the nuclear deal are not possible, which is why Brent has won more than his US counterparts "Tamas Varga, analyst at PVM Oil Associates, said in a note.
Read: Wall Street Believes President Trump Can not Control Oil Prices
Oil traders will look at weekly data on oil stocks to update US crude oil inventories and production volumes ,
The Energy Information Administration will release its report on Wednesday. S & P Global Platts analysts forecast a decline of 1.1 million barrels of crude oil inventories and a decline of 500,000 gasoline deliveries for the week ending April 20. They also predict that distillate stocks, including fuel oil, will be unchanged for the week. The American Petroleum Institute, a trading group, will publish its own data on Tuesday.
"While further upside potential for oil may be forthcoming in the near future, sustainability in the rally is a problem," said Lukman Otunuga, research analyst at FXTM.
"WTI bulls could be heavily dependent on geopolitics to raise prices, which could expose the oil to extreme downside risks as geopolitical tensions weaken," he said. "With rising US slate production still an important market issue that continues to weigh on oil prices, it will be interesting to see how much oil is worth before bears hit the market."
Among the energy products May gas
RBK8, + 0.05%
added 0.3% to $ 2.13 per gallon while oil was heated for the same month
HOK8, + 0.26%
rose 0.5% to $ 2.151 per gallon.
Can natural gas
NGK18, + 1.09%
added 1% to 2,766 per million British thermal units.