SINGAPORE (Reuters) – Oil prices inched up on Monday as U.S. sanctions in opposition to Iran pointed in direction of a tighter market, though issues over slowing financial progress amid international trade tensions saved a lid on good points.
An oil pump jack is seen at sundown in a discipline outdoors Scheibenhard, close to Strasbourg, France, October 6, 2017. REUTERS/Christian Hartmann
Front-month Brent crude oil futures LCOc1 had been at $72.88 per barrel at 0053 GMT, up by 7 cents from their final shut.
U.S. West Texas Intermediate (WTI) crude futures CLc1 had been up 16 cents at $67.79 per barrel.
The United States has began implementing new sanctions in opposition to Iran, which from November will even goal the nation’s petroleum sector.
“With U.S. sanctions on Iran back in place … all eyes have been on the impact on crude oil exports from that country,” ANZ financial institution stated on Monday.
“Maintaining global supply might be very challenging,” the financial institution stated, though it added that “the U.S. is doing its bit to increase production, with data showing drilling activity is continuing to rise.”
U.S. vitality firms final week added probably the most oil rigs since May, including 10 rigs to deliver the whole depend to 869, in keeping with the Baker Hughes vitality companies agency.
That was the very best degree of drilling exercise since March 2015.
Also probably weighing on oil markets are indicators of slowing financial progress and gas demand progress, particularly in Asia’s massive rising markets.
“Lower demand from China, the world’s biggest importer, comes at a critical time when demand growth from Asia in general is being called into question. This due to the negative impact of trade wars, a stronger dollar and rising funding costs,” Ole Hansen, head of commodity technique at Denmark’s Saxo Bank, stated in a observe late final week.
(For a graphic on ‘U.S. oil rig depend’ click on reut.rs/2OwEL6C)
Reporting by Henning Gloystein in Singapore; Additional reporting by Gary McWilliams in Houston; Editing by Joseph Radford