USA revises up Brent oil forecast by $5 for 2019, 2020

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Crude prices have been bolstered as exports from several suppliers including Iran face disruption. Brent crude futures settled up 39 cents, or 0.55 per cent, at US$71.24 a barrel.

India is scheduled to receive two crude carriers carrying 4 million barrels of Iranian oil this month.

Propane/propylene inventories increased by 1.0 million barrels last week and were about 17 percent above the five-year average for this time of year.

With U.S. sanctions on Iran and Venezuela in place, analysts said global oil markets remained tight.

The United States ended the sanction waivers for all Iranian customers in a move that caught the oil market off guard as analysts were widely expecting that the Trump Administration would extend at least some of the waivers in order to keep oil and gasoline prices in check.

United States president Donald Trump on Sunday announced he would hike tariffs on US$200 billion worth of Chinese goods this week.

U.S. West Texas Intermediate (WTI) crude futures were at $62.30 per barrel, 5 cents above their last settlement.

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The US decision to tighten economic curbs on Iran is now providing no support for oil prices, Schieldrop said.

"The US government may possibly be preparing to put sanctions on Iran's petrochemical products because they know well that these products are one of the most important exports of Iran and bring significant foreign exchange to the country", he added. US gold futures were up 0.2 percent at $1,283.90 an ounce.

But top Chinese negotiator Vice Premier Liu will head to Washington this week for talks, and some investors have interpreted Trump's threat as a negotiating tactic. The country is the world's biggest oil importer.

The sources said based on the rights envisioned in JCPOA's paragraph of 26 on the European Union commitments and also in paragraphs of 36 and 37 which are about dispute resolution mechanism, Iran plans to decrease some of its commitments and resume a number of its nuclear activities that have been ceased under the JCPOA.

While this amount showed a 1.38 million barrel per day (mbpd) increase from the 9.26 million bpd in March, it also marked an 11% jump from the same month of 2018.

USA crude stocks have climbed to their highest since September 2017 and were forecast to have added another 1.2 million barrels last week, according to analysts in a Reuters poll.