Global benchmark Brent gained $1.11 to settle at $78.23 a barrel.
Oil prices rose to multiyear highs on Tuesday, bolstered by signs that major oil producers are still committed to reducing supply and the rising specter of US sanctions against Iran.
West Texas Intermediate crude rose 26 cents to settle at $70.96.WTI´s discount to Brent was as much as $7.28, its widest since December 12 on surging US output.
World oil prices have surged by more than 70 percent over the past year as demand has risen sharply but production has been restricted by the Organization of the Petroleum Exporting Countries, led by Saudi Arabia, and other producers including Russian Federation.
With renewed USA sanctions looming against OPEC-member Iran and oil demand strong, analysts said crude prices were well supported.
US President Donald Trump's decision to reintroduce sanctions on Iran have thrown a curveball into Middle East relations, with many expecting this to have continued ripples throughout the world and region.
These risks, including the re-imposition of oil sanctions against Iran, and the upcoming results of May elections in Venezuela, may materialise into actions that remove oil supplies from the global market, and in turn, tighten global oil balances.
The data poses worries that near-record high refinery runs may be short-lived.
Global oil supplies could be hit by the decision by the United States to pull out of the Iran nuclear deal, and also by falling production in crisis-hit Venezuela, the IEA said on Wednesday. Concerns over the impact of U.S. re-sanctioning on Iran apart from other factors like economic crisis in Venezuela are keeping the oil prices high.
OPEC figures published on Monday showed that oil inventories in OECD industrialised nations in March fell to 9 million barrels above the five-year average, down from 340 million barrels above the average in January 2017. Current crude exports from Iran are around 2.6 million barrels per day; over one million barrels higher than the 1.5 million exported under the sanctions imposed by Barack Obama in 2012.
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