Crude Oil rebounded from a five-week low today on speculation that yesterday’s drop, the biggest since September, was exaggerated.
 
Crude fell 5.2% yesterday after OPEC decided to increase its production ceiling to 30 million barrels a day, the first change in three years. The organisation did not however discuss placing individual quotas. The deal defends Saudi Arabia after its proposal to raise output in June to stem rising prices was rejected by member states Iran, Algeria and Venezuela. Meanwhile, the Arab nation said it pumped ten million barrels a day last month, 25% above its old OPEC quota. However it said it won’t compensate for any potential decline in Iranian oil supply if the Persian country comes under sanctions. Iran, the second-largest producer in OPEC after Saudi Arabia, may come under additional sanctions that target its crude trade, as the EU and other importers seek to intensify pressure on the country over its nuclear programme.
 
Iran added to concerns earlier this week, leading to crude oil jumping over 2%, after rumours surfaced that the Iranian military was set to practice shutting the Strait of Hormuz, the world's most important oil shipping route. A report released by the US Department of Energy yesterday showed that crude inventories in the US – the world’s largest oil consumer – declined 1.9 million barrels last week. Stockpiles were lower even as imports increased and refineries reduced processing.