Earlier this year, OPEC officials started to signal that mid-April would have been too early to assess the actual impact of the sanctions on Venezuela and the USA policy on the waivers for Iranian oil customers, after the current waivers expire in early May.
Worldwide benchmark Brent futures were at $70.62 per barrel at 0716 GMT on Monday, up 28 cents, or 0.4 per cent from their last close. U.S. West Texas Intermediate (WTI) crude oil futures climbed 24 cents to $64.22 a barrel.
Oil prices raced on Wednesday to five-month highs hit the previous day as the Organisation of Petroleum Exporting Countries (OPEC) production cuts and United States (U.S.) sanctions on Iran and Venezuela continued to tighten supply, though economic worries increased.
A latest report by global wealth management and investment banking company Stifel said that the crude oil market will likely be undersupplied in the second half of this year, creating opportunities for investors.
To prop up prices, the Organisation of the Petroleum Exporting Countries (OPEC) and non-affiliated allies like Russian Federation, known as OPEC+, have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year.
"Declines from these two exempt countries account for nearly 47% of the reduction seen from OPEC", ING added.
The Dutch bank said the reduction was not only down to voluntary supply cuts, which the group started this year to prop up prices.
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The OPEC monthly report released on Wednesday showed that Venezuela's oil output sank last month to a long-term low below 1 million barrels per day, due to USA sanctions and blackouts.
USA crude exports have also risen, breaking through three million bpd for the first time earlier this year.
Despite the OPEC-led cuts, not all regions are in tight supply.
Venezuela's oil production is also forecast to decrease to 750,000 bpd this year, from 1.31 million bpd last year, according to the report.
The bank said it expected Brent and WTI to average $70 per barrel and $59 per barrel respectively in 2019, and $65 per barrel and $60 per barrel in 2020.
"Even though the crude oil inventory rise was almost equal in size, the focus of the complex, as we head into peak summer driving season, is gasoline", said John Kilduff, a partner at Again Capital LLC in NY.