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Analysts at Royal Bank of Scotland, note that the global oil prices, which have increased since the beginning of the year, exceeded $70/bbl (Brent, ICE) in early May albeit temporarily.

Key Quotes

“Latest US sanctions on Iran and Venezuela’s demise are key factors, rising political tensions in Libya have also had an impact. The Trump administration is hopeful that OPEC+ countries will increase production to halt the latest oil price rise but there is little sign of this.”

“The latest OPEC+ Joint Ministerial Monitoring Committee (JMMC) meeting in Jeddah discussed raising oil production but was not implemented. The focus will now shift to the next OPEC meeting in late June. Supply-side factors are supportive for oil but worries about weaker demand are on the rise.”