But Kloza sees relief in the future because oil production is booming in the U.S. The E.I.A. projects domestic crude production will rise to almost 12 million barrels a day in 2019 - that's a million more barrels of oil a day than the country is expected to produce this year.
An index that tracks the dollar against a basket of leading currencies climbed to 92.974, its highest since December. Earlier in the session, they touched their highest since November 2014 at $75.89 a barrel.
In the meantime, France, Germany and Britain have been looking at ways of minimizing US influence in the event that sanctions are reimposed, while the Iranian President Hassan Rouhani suggested on Monday that Iran might remain in the nuclear deal even if Trump abandons it and imposes sanctions.
Oil fell 2.7 percent Tuesday after CNN reported the USA would pull out of the Iran deal and allow sanctions to go forward, but that they could take months to go into effect.
USA oil firm ConocoPhillips has moved to take key Caribbean assets of Venezuela's state-run PDVSA to enforce a $2 billion arbitration award, actions that could further impair PDVSA's declining oil production and exports.
Yemen's production output of 30,000 b/d is not enough to influence the market negatively but the country's Houthis rebels backed by Iran have attacked oil shipments in local waters raising concerns about shipping oil through the Red Sea. U.S. West Texas Intermediate (WTI) crude futures fell 81 cents to $69.92. USA crude prices hit $70 per barrel on Monday, both Iraq and Venezuela are holding elections soon, and US summer driving season begins on Memorial Day weekend. Japan's Nikkei was 0.3 percent higher.
Some analysts cautioned that the rally in technology shares could face a short-term correction as valuations soar. Leaving the deal may have large implications for oil markets, possibly removing 300,000 to 500,000 barrels per day at a time OPEC continues to reduce supply and Venezuela's output is falling rapidly.
There is now a "positive feedback loop", but if some sort of unforeseen negative event takes place, it "may turn into a negative feedback loop", he said.
Venezuela's oil industry-like its economy-is in shambles, with production down by 50 percent since its peak in the early 2000s to 1.55 million bpd, data from Bloomberg suggests.
On Tuesday, China reported exports and imports jumped in April, beating forecasts, but the news did not impact markets.
Commodity-linked and emerging market currencies slid on worries about the USA withdrawal, which would curb risk appetite in financial markets. The nations pledged last month to continue their curbs until the end of the year.
The Japanese yen was little changed against the dollar at 109.06 yen.
According to the US Energy Information Administration, a decent rule of thumb is that every $1 move in crude oil corresponds to a 2.4 cent move in the price of gas. Analysts expect that will be reflected in commodities and financial markets.
With demand still rising strongly - first-quarter growth was one of the strongest over the past decade - and production having tightened, oil stocks have fallen quite sharply, putting upward pressure on prices. The Brazilian real hit near two-year low and the Turkish lira hit a record low.
The Indian rupee hit a 15-month low while the Indonesian rupiah hit its lowest level since December 2015 on Tuesday.
WEAK SAUCE: Papa John's global dropped 3.9 percent to $56.46 after the pizza chain's first-quarter results fell short of analyst estimates.
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