-China trade dispute-and its impact on global oil demand growth, than the likelihood of a major supply outage.
Supporting prices was an Iranian military official's comments that Britain's seizure last week of an Iranian oil tanker off the coast of Gibraltar will not be "unanswered", according to the semi-official Tasnim news agency.
Oil prices dipped on Tuesday on demand concerns following the latest signs the U.S. Technical issues as well as maintenance at some oil infrastructure pushed output lower.nearly 700,000bpd of the country's crude output remains at risk due to its protracted civil war, according to state-owned National Oil Corporation, which is calling for the global community to intervene in the conflict.
Iran threatened to restart deactivated centrifuges and step up its enrichment of uranium to 20% in a transfer that additional threatens the 2015 nuclear agreement that Washington deserted a year ago.
Deutsche Welle on June 24, in "How Trump's Sanctions are Crippling Iran's Economy", highlights the catastrophe, writing that "Iranians. have seen the value of Iran's currency, the rial, plummet about 60% over the past year".
Oil also gained support from forecasts that USA data would show US crude stockpiles fell 3.6 million barrels in the latest week. It should be noted that the economic powerhouses are also the world's two largest oil consumers.More news: Wimbledon: Simona Halep beats USA teen Cori Gauff for quarterfinal berth
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Uncertainty over how the U.S. -Iran showdown will play out is one reason for oil's inability to reprise April's highs of above $66 per barrel on and above $75 on.
Oil held above $57 a barrel as rising tension in the Middle East kept investors wary of potential supply disruptions.
However, lack of concrete progress in resolving the acrimonious trade war between the United States and China means the bar could be very high for the U.S. Federal Reserve not to lower borrowing costs at its July 30-31 policy meeting.
On the other side of the world, OPEC and its allies agreed last week to extend production cuts for a further nine months to help support prices against a weakening global demand, calling for participating countries to cut output by around 1.2 million barrels per day.
It was the sixth consecutive month that the EIA revised its 2019 demand forecast.
According to ING, expectations in a Bloomberg survey point to a draw of some 2.55 million barrels in USA crude oil inventories over the last week, and a 2.2 million barrel draw in gasoline inventories. This follows discovery of contaminated Urals crude that affected the Druzhba pipeline to Europe. The nation is the world's fourth-largest user of crude.