Oil prices dip as OPEC hints rise in production

Oil prices were lower on Wednesday despite US announcing a bellicose list of demands on Iran, leaving no chance of reviving the nuclear deal. Oil prices mainly dipped after OPEC hinted at increasing the production to some degree after the next meeting as geopolitical tensions put the global supplies on risk. Prices have also been in limelight in the wake of elections at Venezuela as Nicolas Maduro won another term in a sham vote receiving strong global retaliation.

Oil prices were lower on Wednesday after the market took a sigh of relief as expectations of OPEC supply increases reached the market, however, geopolitical risks continue to weigh in on the market.

Brent futures dipped 4 cents to $79.53 a barrel by 0006 GMT, after climbing 35 cents on Tuesday. Last week, the global benchmark hit $80.50 a barrel, the highest since November 2014.

U.S. West Texas Intermediate (WTI) crude futures eased 2 cents to $72.18 a barrel, having climbed on Tuesday to $72.83 a barrel, the highest since November 2014.

OPEC has hinted at increasing the oil output as pressures mount on Venezuela and Iran after the US looks to impose sanctions on both major oil producers. However, Europe continues to be in the favor of revival of Iran – US deal as the fallout has put the European investments at risk.

OPEC’s led cuts during the past two years have helped the market end the supply glut which brought oil prices to historical lows.

On Monday, the United States demanded Iran make sweeping changes - from dropping its nuclear program to pulling out of the Syrian civil war - or face severe economic sanctions.

Iran dismissed Washington's ultimatum and one senior Iranian official said it showed the United States is seeking "regime change" in Iran.