Investing.com - Oil prices edged lower on Wednesday morning in Asia, as markets considered the possibility of higher output from the Organization of the Petroleum Exporting Countries (OPEC).
Crude Oil WTI Futures for July delivery were trading at $71.89 a barrel at 11:15PM ET (03:15 GMT), down 0.43%. Brent Oil Futures for July delivery, traded in London, were down 0.74% at $78.98 per barrel.
OPEC may decide to raise oil output as soon as June due to worries over Iranian and Venezuelan supply and after Washington raised concerns the oil rally was going too far.
Concerns about a potential drop in Iranian oil exports following Washington’s exit from a nuclear arms control deal with Tehran have driven prices to multi-year highs. U.S. sanctions against Iran, which currently produces 4% of global oil supplies, may cause shortages later this year when trade restrictions take effect.
On Monday, the U.S. demanded Iran make sweeping changes - from dropping its nuclear program to pulling out of the Syrian civil war - or face severe economic sanctions.Tehran dismissed Washington’s ultimatum.
Meanwhile, production in Venezuela plunged to 1.5 million barrels last month, its lowest level in decades due to its ongoing economic crisis. Venezuela’s crude output could drop further following a disputed presidential election. The U.S. is also considering oil sanctions on Venezuela.
Rising supply in the U.S., where shale production is forecast to hit a record high in June, has limited the upward move in prices, although geopolitical risks are expected to keep prices near multi-year highs.
The U.S. oil rig count, an early indicator of future output, is at 844, the highest level since March 2015.
Oil prices have surged more than 70% over the last year as demand has risen sharply while OPEC and Russia have led efforts to restrict production since January 2017.
Meanwhile, Shanghai Crude Oil WTI Futures for September delivery were up 0.10% at 483.30 yuan ($75.80) per barrel on Wednesday at 11:15PM ET (03:15 GMT).