Oil rose towards $80 a barrel on Tuesday, supported by concern that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply, Reuters reported.
Crude is trading at the highest since late 2014, underpinned by a supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand.
Brent crude LCOc1, the global benchmark, rose 63 cents to $79.85 a barrel by 0812 GMT. Last week, it topped $80 for the first time since November 2014.
U.S. crude CLc1 was up 42 cents at $72.66, having earlier traded at $72.72, its highest since November 2014.
“The solid global economy, selected supply disruptions and the upbeat market mood in particular in oil frame a positive environment,” said Norbert Ruecker, head of commodities and macro research at Julius Baer.
The U.S. government imposed new sanctions on Venezuela following Sunday’s re-election of President Nicolas Maduro, a move that analysts say could further curb the country’s oil output already at its lowest in decades.
Concern about a potential drop in Iranian oil exports following Washington’s exit from a nuclear deal with Tehran and the threat of U.S. sanctions is also supporting prices. On Monday, the United States hardened its approach to Iran.
Venezuela and Iran are members of OPEC, which with its allies has curbed production since January 2017 to get rid of a supply glut that in mid-2014 led to a price collapse.