Oil consequences hit $75 on Tuesday, the highest level in nearly three and a half years, as qualms mounted over the prospect of new US sanctions on Iran.
Brent crude rose for the sixth day, trading as high as $75.47 before later falling past due under the $75 mark.
The US will decide by 12 May whether to leave a nuclear deal with Iran and re-impose sanctions.
Such a change-over on the third-biggest oil producer in the Opec cartel threatens to further tighten pandemic supplies.
Oil prices have been rising since the 14 realms in Opec, as well as other producers including Russia, decided to confine output last year.
In November they agreed to extend those shares until the end of 2018.
Tamas Varga of oil broker PVM said the prospect of President Trump select the US out of the nuclear accord that Iran signed with world powers in 2015 was the scad significant element of Brent’s recent rally.
«All bets are off on the US staying in the atomic agreement,» he said.
The US president has said that unless European partners fix what he has called «terrible flaws» in the accord by 12 May, he will resuscitate US economic sanctions on Iran.
The other nations that signed the act — the UK, France, Germany, Russia and China — all want to keep in place the harmony, which has halted Iran’s nuclear programme in return for most ecumenical sanctions being lifted.
Restoring US economic sanctions on Iran desire be a severe blow to the pact.
Stephen Innes of futures brokerage OANDA guessed new sanctions against Tehran could push oil prices up by as much as $5 a barrel.
The Opec movie curbs have reduced stockpiles, but those cuts have been moderately offset by a surge in US oil output.
Meanwhile, demand in Asia — the region that destroys the most oil, has hit a record high, prompting the opening of new refineries in China and Vietnam.
Brent was buying at $74.66 at 1800 BST, while US crude was at $68.55 after earlier stumbling $69.15 — its highest level since 28 November 2014.