Crude oil prices fell in Asia on Tuesday with the market uncertain if President Donald Trump will act to re-impose sanctions on Iran after Israel released a trove of documents related to Tehran’s nuclear weapons program
ICE Brent crude futures, the benchmark for oil prices outside the US, fell 0.87% to $74.04 a barrel. US West Texas Intermediate crude futures dropped 1.06% to $67.84 a barrel. The US dollar index rose 0.38% to 91.98.
The White House has corrected its statement regarding Iran’s nuclear weapons program to show Tehran had a nuclear weapons program, after Israel released documents from Iran that showed the country once sought to obtain nuclear weapons.
As well, US Secretary of State Mike Pompeo commented that “the Iranian regime has insisted to the world that its nuclear program was peaceful. The documents obtained by Israel from inside of Iran show beyond any doubt that the Iranian regime was not telling the truth.”
Ahead, the American Petroleum Institute reports its estimates of weekly US crude oil stocks at 4:30 p.m. on Tuesday. Initial forecasts see a build of 1.267 million barrels for crude, a 1.333 million barrels drop for distillates and a 424,000 barrels decline in gasoline stocks.
The estimates are followed by official data from the Energy Information Administration on Wednesday at 10:30 a.m.
Overnight the Energy Information Administration said US crude oil production jumped 260,000 barrels per day (bpd) to a record 10.26 million bpd in February.
OPEC output fell by 70,000 bpd to 32.12 million bpd in April, according to a Reuters survey the lowest since April 2017. OPEC pumped about 610,000 bpd below this implied target in April
OPEC has pledged to trim 1.2 million bpd since January 2017 through the end of this year with allies led by Russia kicking in another 600,000 bpd.
Saudi Arabia played its role as a swing producer and Venezuela continued to struggle with production at 1.5 million bpd, which along lower output from Angola and solid demand and geopolitical tension centered on Iran helped benchmark Brent crude cross $75 a barrel in April.
Natural gas futures rose 0.07% to $2.765 per million British thermal units (mmBtu).