But is that top form good?
At 10:20 am Singapore time (0220 GMT), ICE June Brent crude futures were down 11 cents/b (0.15%) from Tuesday's settle to $73.75/b, while the NYMEX June light sweet crude contract inched down 7 cents/b (0.10%) at $67.63/b.
Dugan avoided making any hard forecasts about how crude might perform if USA president Donald Trump cancels the Iran nuclear deal next month after all and imposes sanctions, preferring only to state that such sanctions could have "a range of outcomes whether it's hard or soft". China's overall oil demand is expected to jump some 370,000 bpd in 2018.
The oil market is already tight and the increasingly wide backwardation indicates traders expect it to become even tighter during the second half of the year, when oil consumption moves seasonally higher. Iran produced about 3.81 MMbpd in March, according to data compiled by Bloomberg. This will fuel bullish sentiment.
Brent oil price rose for the sixth consecutive day, crossing the barrier 75 United States dollars per barrel during the Asian session because of expectations of potential supply problems if the U.S. imposed sanctions on Iran.
In November, OPEc and non-Opec countries agreed to extend those 1.8 million bpd cuts until the end of 2018.
"The fact is that time is running short and the rhetoric will intensify as the May 12 Iranian sanctions waiver deadline approaches", he added.
Set up for new oil crash?
The timing of Trump's tweet was not random.
"With rising production from U.S shale still a key market theme that continues to weigh on oil prices, it will be interesting to see how much oil appreciates before bears enter the scene", he said.
Igor Yushkov, a leading expert at the National Energy Security Fund, told Pravda.Ru that there are two factors that contribute to the growth of oil prices. He said the danger now facing the market is that Opec overshoots on tightening the market, which could exacerbate the backwardation in prices, prolong the rally in near-term prices and ultimately erode demand.
In 2008, when oil almost hit $150 per barrel, he world suffered a financial crisis throwing global economies in recession.
In particular, they point to the relatively low level of investment in exploration and production to justify the need for continued production curbs and even higher prices. "That is a big concern..." But now that oil markets are rising, the issue takes on greater urgency.