Oil widens gains before US inventory data

Oil prices maintained their gains in American trade for the second straight session, with US crude hitting 3-1/5 year highs, while Brent traded above $80 a barrel again amid expectations of supply shortages from Venezuela after disputed elections, and as traders await US inventory data.

As of 12:52 GMT, US crude rose to $72.65 a barrel from the opening of $72.61, while Brent rose to $80.02 a barrel from the opening of $79.39.

US crude rose 1.8% yesterday, the largest profit since April 18, while Brent added 1%, after reports about initial solutions to the US-China trade dispute. 

Oil prices marked the sixth weekly profit in a row last week, the longest such winning streak since October 2017 on expectations of cut in Iranian supplies. 

US Secretary of State Mike Pompeo said America will impose the strictest sanctions "in history" on Tehran, promising that Iran will strive for economic life after the sanctions go into place. 

Pompeo has put up 12 requirements for the Iranian regime to fulfill before taking down the sanctions, including ending the nuclear program and withdrawing their troops from Syria and ending their support for Houthi repels in Yemen. 

On another front, the US is likely to impose additional sanctions on Venezuela after disputed elections, which could curb the already-collapsing Venezuelan output. 

Socialist Venezuelan President Nicholas Maduro faced international condemnation after getting reelected in the weekend in what critics considered a rigged election. 

Venezuelan output is already but nearly one million bpd to 1.5 million bpd due to political and economic turmoil from 2.5 million bpd in early 2016. 

Later today, the American Petroleum Institute will release initial data on US crude inventories, while the Energy Information Administration will release the official report tomorrow, expected to show a 2.5 million barrels drawdown.