Meanwhile, neighboring Canada lost 7 rigs for the week, after shedding hundreds rigs (seasonal effects) in the last couple of months.
Both the Brent and WTI benchmark were trading up on the day earlier on Friday, supported by the Iran nuclear sanctions issue that is set to come to a head on May 12, and falling production in Venezuela that is expected to continue as the country slips further into disarray.
U.S. President Donald Trump has one more to decide the fate of the sanctions against Iran, although it is largely expected that he will refuse to waive the sanctions—a theory that has in itself supported the price of oil this last month, with Brent briefly breaching beyond $75 to its highest price level since November 2014. Prices are expected to be volatile as we move closer to the deadline for the decision.
For Venezuela’s part, while production is not expected to reclaim its previous levels, the presidential election in Venezuela scheduled for May 20 is yet another May decision that will impact already volatile prices. Related: Canada Oil Revenues Fall Despite Production Growth
US oil production rose again in the week ending April 27, reaching 10.619 million bpd—the increase in as many weeks—less than a 400,000 bpd off the 11.0 million bpd forecast that many predict for 2018.
By Julianne Geiger for Oilprice.com
More Top Reads From Oilprice.com:
- Oil Prices Up As Iran Deal Hangs In The Balance
- Will Higher Oil Prices Destroy Demand?
- The Gulf State That Needs $113 Oil