Oil nears 6-week high

LONDON. — Oil rose for a second day yesterday, nearing its highest in six weeks after a surprise decline in US inventories and as concern persisted over possible disruption to Middle East supply.

Unexpectedly large inventory declines in the United States helped underpin the market, even though refinery maintenance reaches a peak this month, but with the hardening stance of the United States towards Iran, most investors were reluctant to sell oil aggressively.

Brent crude futures were up 84 cents on the day at $68,26 per barrel by 1202 GMT. Brent has risen by 10 percent since hitting a two-month low of $61,77 in early February.

US West Texas Intermediate (WTI) crude futures were up 68 cents at $64,22 a barrel.

Saudi Arabia’s Crown Prince Mohammed bin Salman on Tuesday arrived in Washington for a state visit, raising speculation the United States could reimpose sanctions on Iran, following renewed criticism of the 2015 nuclear deal.

“You still have geopolitical considerations and possible US action on Iranian sanctions . . . that is going to be relatively prompt, in May,” Petromatrix strategist Olivier Jakob said.

“So even though you do see signs that the market is lax on the physical side, do you go aggressively bearish when you have the potential for something happening between the US and Iran?”

Analysts also pointed to the nomination of Mike Pompeo as new US Secretary of State as a risk to oil markets, given he fiercely opposed the Iranian nuclear deal as a member of Congress.