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Oil jumps after Trump fires Rex Tillerson putting Iran nuke deal in focus

The market is having a wobble on the back of the potential impact on future supply from Iran and also for the ramifications for the Middle East as a whole

Reuters  |  LONDON 

Oil hits highest since mid-2015, then dips

rose after fired on Tuesday, sparking a dollar fall and concern that a deal on Iran's nuclear programme could collapse.

The U.S. is replacing Tillerson with loyalist CIA Mike Pompeo, an of Iran, who has called for a 2015 nuclear deal to be scrapped.

Trump has threatened to withdraw from the accord between and six world powers, signed before he took office, unless and European allies "fix" it with a follow-up pact.

"The market is having a wobble on the back of the potential impact on future supply from and also for the ramifications for the as a whole," Saxo Bank's said.

"It may impact companies' appetite for investment, so (Iran) might not cut production but it might go some way towards dampening their ability to maintain, let alone increase, production," Hansen, a at Saxo Bank, added.

is the third largest producer in the Organization of the Petroleum Exporting Countries, behind and Iraq, with output of around 3.82 million barrels per day.

Brent crude futures were up 41 cents at $65.36 a barrel by 1415 GMT, off an earlier low of $64.35, while U.S. Intermediate (WTI) crude futures were up 34 cents at $61.70 a barrel.

Both crude benchmarks dropped by around 1 percent on Monday after the said output from the shale basin would hit a new record high in April.

U.S. crude inventories are expected to show an increase later in the day when the reports its weekly findings.

U.S. crude production from major shale formations is expected to rise by 131,000 bpd in April from the previous month to a record 6.95 million bpd, the (EIA) said in a monthly report on Monday.

That expected increase would top the 105,000 bpd climb in March from the previous month, to what was then expected to be a record high of 6.82 million bpd, the EIA said.

First Published: Tue, March 13 2018. 21:03 IST