Shares of energy companies sank even as oil futures gave up early losses to finish higher.
Expectations that major Gulf producers won’t extend voluntary output cuts beyond this month, as well as the potential for a climb in U.S. output, had pressured prices.
In a report Tuesday, however, the Energy Information Administration raised its 2020 forecasts for U.S. and Brent crude prices and lowered its forecast for U.S. oil production this year. The EIA will release its weekly data on U.S. petroleum supplies Wednesday. Analysts polled by S&P Global Platts expect the data to show a decline of 3.2 million barrels in crude supplies.
The Trump administration, expanding an effort to choke off oil and fuel trade between Iran and Venezuela, is readying new sanctions against dozens of tankers while pressuring companies associated with those vessels, The Wall Street Journal reported citing people familiar with the plans.
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