Investing.com - Oil prices rose above $70 a barrel on Monday morning in Asia for the first time since November 2014, as possible Iran sanctions and a deepening economic crisis in Venezuela threatened to disrupt oil supplies.
Crude Oil WTI Futures for June delivery were trading at $70.40 a barrel at 11:30PM ET (03:30 GMT), up 0.98%. Brent crude futures for July delivery, traded in London, were up 1.10% at $75.69 per barrel.
Shanghai Crude Oil WTI Futures for September delivery were up 3.10% at 459.30 yuan ($72.35) per barrel.
Oil markets have remained on edge since Iran took a tough stance in its response to the U.S. regarding a 2015 nuclear deal that will expire on May 12.
U.S. President Donald Trump will decide by then whether to walk away from the deal and re-impose sanctions on Tehran, which would likely result in a reduction of its oil exports and tighten global supplies. Iran is the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC).
Iran resumed its role as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran’s nuclear program. Iran’s oil exports hit 2.6 million barrels per day (bpd) in April, a record since the lifting of sanctions, with China and India buying more than half of Iran’s oil.
Traders are also worried that the deepening economic crisis in major oil exporter Venezuela will hurt its production and exports further.
Venezuelan oil output has tumbled 40% in two years due to political and economic turmoil. The output has halved since the early 2000s to just 1.5 million bpd, as the South American country has failed to invest enough to maintain its petroleum industry.
In addition to the geopolitical uncertainties, a backdrop of OPEC-led supply cuts and strong global demand continues to prop up prices.
Some traders are becoming cautious about the ever higher oil prices.