Mubasher: Oil prices inched down on Wednesday as the Organization of the Petroleum Exporting Countries (OPEC) is weighing up easing supply restraint despite the geopolitical risks could keep the prices at their multi-year highs.

Brent crudes shed almost 0.5% to $79.20 per barrel (pb) early Wednesday, after adding $0.35 on Tuesday and hitting a three-year-and-a-half high of $80.50 pb last week, while US Nymex futures nearly lost 0.3%, after jumping to $72.83 pb, the highest price since November 2014.

OPEC is projected to raise oil production in June, driven by concerns about Iranian and Venezuelan supply shortage, while the US Washington expressed its fear that oil prices are rallying to extreme levels, sources familiar with the discussions told Reuters.

OPEC supply cut deal has cleared an inventory surplus in industrialised countries, based on the agreed goals.

On Monday, the US has made sweeping demands to Iran, from dropping its nuclear programme to withdrawing from the Syrian civil war, pledging severe economic sanctions if OPEC's third-largest producer does not comply.

In addition, US President Donald Trump issued an executive order prohibiting individuals and entities in the world's largest economy from entering into any transactions with the government of Venezuela after controversial presidential elections.

In the same vein, the White House is actively weighing oil sanctions on the Latin American country, threatening an output fall in the oil markets.

“Investors are mindful of upcoming talks between Russia and Saudi Arabia about whether they should look at a controlled relaxation of over-compliance with their output cut agreement,” Reuters reported, citing Australia and New Zealand Bank (ANZ) as saying.

By 7:11 am GMT, Nymex futures dropped 0.37 to $71.93 pb, while Brent crudes plummeted 0.69% to $79.02 pb.