Oil prices rise on Iran sanction worries, despite surging US supplies

Oil prices rose on Wednesday, lifted by concerns that the United States may re-impose sanctions on major exporter Iran, although soaring US supplies capped gains.

Brent crude oil futures were at $73.25 per barrel at 0020 GMT, up 12 cents, or 0.2 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were up 20 cents, or 0.3 per cent, at $67.45 per barrel.

Iran re-emerged as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran's nuclear programme.

Iran's oil exports hit 2.6 million barrels per day (bpd) in April, the Oil Ministry's news agency SHANA reported on Tuesday, a record since the lifting of sanctions, with China and India buying more than half of Iran's oil.

The United States, however, has expressed doubts over Iran's sincerity in implementing those curbs and President Donald Trump has threatened to re-impose sanctions.