22.05.201802:58:00UTC+00Oil Prices Climb on Venezuela, Iran Supply Concerns

Oil prices rallied on Tuesday on worries that Venezuela's crude production could further decline after a controversial election and potential U.S. sanctions on the OPEC-member.

The U.S. has also hardened its stance on Iran and laid out a list of sweeping demands, which could further limit the country's crude oil exports and bolster oil prices.

Brent crude futures stood at $79.39 per barrel up 17 cents or 0.2 percent from their last settlement. Brent rose above $80 for the first time since November 2014 in the previous week.

U.S. WTI crude futures stood at $72.47 per barrel, up 23 cents or 0.3 percent.

Venezuelan President Nicolas Maduro faced international criticism on Monday following his re-election in a controversial vote denounced by critics as void, solidifying autocracy in the economic crisis-stricken oil producer.

According to analysts, oil stockpiles are currently tight and the U.S. will likely toughen sanctions on Venezuela which will make the situation in the crude producing country worse and in turn means that continued declining Venezuelan production can be expected. Combined with the expectations for declining Iranian production as the U.S. pressures allies to lower their imports, these factors will drive oil prices up to $80 per barrel and even beyond.

Worries that looming U.S. sanctions on Iran will limit that nation's crude exports have also provided support for oil prices in recent weeks.