Disappointing data from US home sales, falling gold prices

Oil prices skyrocketed as US stocks collapsed. This adds to the concerns of supply in the market.

In addition, earlier supply was also affected by uncertainty surrounding Libyan exports, production interruptions in Canada and Washington's demand that importers cease to buy Iranian crude in November.

The low spare capacity, according to John Kilduff of Partner Again Capital Management, offset other production interruptions.

Futures on US crude increased by $ 2.23, or 3.16%, to $ 72.76 per barrel. The price of oil hit USD 73.06 a barrel, the highest level since November 28, 2014.

Meanwhile, Brent crude oil prices rose $ 1.31 or 1.7% to $ 77.62 per barrel. Both oil prices also reduced its rise after trading.

US crude oil prices increased from 1.77 USD to 72.30 USD per barrel. Brent crude oil rose 90 cents to $ 77.21 a barrel.

Tariq Zahir, managing director of Tyche Capital, said oil prices have risen sharply in two consecutive sessions so market players are taking advantage of the positions to exit. Especially near the end of the quarter.

On the basis of data from the Energy Information Administration (EIA), US crude inventories fell by nearly 10 million barrels last week. The decline was the largest since September 2016. While the supply of gasoline and distillates has increased less than expected.

In Cushing, Oklahoma, the oil delivery hub for futures, crude inventories fell 2.7 million barrels. A random draw in Cushing reports a day of production disruption at a supplier in Canada. Syncrude oil facilities at least until July offline after a blackout last week.

"Cushing is a big lie – you'll get a better result this week," said Mizuho director Bob Yawger.

The price of crude oil contracts in the United States next month in the $ 4.67 range above the six-month contract is the largest since July 2014. This encourages further withdrawal from storage.

In addition, a decline in Canadian exports helped drain heavy crude oil supplies in North America. Analysts are also concerned about the risk of supply disruptions from Africa and the Middle East.

In Libya, power struggles have made the situation unclear if internationally recognized governments and rebels will manage oil exports. The future of Iranian crude oil exports is also uncertain. The United States has asked all nations to stop Iranian oil imports from November.

The Organization of Petroleum Exporting Countries (OPEC) will strive to deal with the deterioration of supply by increasing production.

Saudi Arabia plans to increase oil production by 11 million barrels a day in July. That rose from 10.8 million barrels a day in June. According to a Reuters source.

Despite broad international opposition to the US position on Iran, badysts predict a significant drop in exports of the third largest producer of OPEC by more than a million barrels a day.

Iran crude oil production of 3.8 million barrels per day in May. According to a Reuters monthly poll. Goldman Sachs said the unilateral sanctions proposed by the United States against Iran could be very effective.

The Eurasia Group consultant expects oil to be withdrawn from the market in November to reach around 700,000 barrels a day. This can boost oil prices.

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