While crude oil prices have pulled back from three-and-a-half year highs as major global oil producers sought to raise output, the oil market still found support from geopolitical risk to supply in Iran. Observers anticipated renewed U.S. sanctions to stifle the Middle Eastern country’s crude exports in the months ahead.
Additionally, monthly government data that showed U.S. oil production dipped to 10.4 million barrels per day in May from 10.5 million in April also provided some support.
“Oil production in the USA has probably reached a peak, easing the pressure from increasing production from OPEC,” Peter Cardillo, chief market economist at Spartan Capital, told the WSJ.
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