Comex

In Comex Crude Oil prices declined on Wednesday morning in Asia, as market considering the possibility of bigger output from the Organization of the Petroleum Exporting Countries (OPEC).

OPEC may decide to raise oil output by early June due to tension over Iranian and Venezuelan supply and after Washington raises concerns the oil rally was going too far.

Worry about a potential drop in Iranian oil exports backing Washington’s exit from a nuclear arms control deal with Tehran has move up the prices to years high. U.S. sanctions against Iran, which currently produces 4% of global oil supplies, may cause shortages later this year when trade restrictions take effect.

On Monday, the U.S. demanded Iran make quick changes - from put off its nuclear program to drop out of the Syrian civil war - or face severe economic sanctions.Tehran dismissed Washington’s ultimatum.

Meanwhile, production in Venezuela jumps down to 1.5 million barrels last month,due to its ongoing economic crisis it shows the lowest level in years.Venezuela’s crude output could drop down further following a disputed presidential election. The U.S. is also considering oil sanctions on Venezuela.

Rising supply in the U.S., where shale production is forecast to hit a record high in June, has limited the upward move in prices, although geopolitical risks are expected to keep prices near multi-year highs.

Oil prices risen up more than 70% over the last year as demand has incresed drastically while OPEC and Russia put efforts to restrict production since January 2017.

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