Oil prices kept their footing on positive grounds on Tuesday, as markets tightened on the Organization of the Petroleum Exporting Countries' (OPEC) continuous effort to trim output and the upcoming USA sanctions against Iran.
Brent for July settlement fell 2 cents to $78.21 a barrel on the London-based ICE Futures Europe exchange.
West Texas Intermediate crude for June delivery traded at $70.89 a barrel on the New York Mercantile Exchange, down 7 cents, at 3:16 pm in Singapore.
The IEA said that the overall market balance was "continuing to tighten", and it lowered its estimate for 2018 global oil demand growth to 1.4 million barrels per day from its previous estimate of 1.5 million.
OPEC crude oil production in April decreased by 130,000 barrels a day to 31.65 million barrels, largely due to further deterioration in Venezuelan production and lower output from Africa.
Oil prices were mixed Tuesday, with the US benchmark pulling back after hitting multiyear highs, even as turmoil in the Middle East continued to boost the global benchmark. In January 2017, OECD inventories were 340m barrels above 5 year averages.
Crude oil prices are now stable - both Brent and WTI are only slightly lower.
The rally has been fueled by speculation that OPEC will continue to cut production, particularly in the failing state of Venezuela.
U.S. names Iran's central bank head 'specially designated global terrorist'
In a 2016 meeting of the Council on Foreign Relation in Washington, Seif said Iran achieved "almost nothing" from the deal. Though it's uncommon to sanction central financial institution officers, the US has carried out it earlier than.
These events surrounding the Middle East has pushed Brent crude to the highest level since March 2015, which is now at $7.3 per barrel.
United States sanctions against Iranian-oil buyers go back into force November 5, and the Treasury Department has instructed countries to make significant cuts to their imports in the next six months to be considered for potential sanctions relief.
With the current price at $78.38 per barrel, Nigeria would be making an excess of $31.38 per barrel sold.
Crude sticking to highs as USA withdrawal from Iran program continues to boost prices.
U.S. shale production is expected to hit a record 7.18 million barrels per day (bpd), the Energy Information Administration said.
"It is too soon to say what will happen this time, but we should examine whether other producers could step in to ensure an orderly flow of oil to the market and offset a disruption to Iranian exports".
"Now that the country is making cool money from crude oil, Federal Government should start saving for us not to experience the 2016 economic downturn again".
"The clash in Israel worsened market sentiment over geopolitical risks in the Middle East, even though it wouldn't directly impact oil's supply and demand", Mikiko Tate, a senior analyst at Sumitomo Corporation Global Research, said by phone from Tokyo.