SINGAPORE (Reuters) – Oil prices inched up on Monday as U.S. sanctions in opposition to Iran pointed in the direction of a tighter market, though considerations over slowing financial development amid world trade tensions saved a lid on positive factors.
An oil pump jack is seen at sundown in a subject exterior Scheibenhard, close to Strasbourg, France, October 6, 2017. REUTERS/Christian Hartmann
Front-month Brent crude oil futures LCOc1 have 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 have been up 16 cents at $67.79 per barrel.
The United States has began implementing new sanctions in opposition to Iran, which from November may 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 mentioned on Monday.
“Maintaining global supply might be very challenging,” the financial institution mentioned, 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. power corporations final week added probably the most oil rigs since May, including 10 rigs to convey the whole depend to 869, based on the Baker Hughes power providers agency.
That was the very best degree of drilling exercise since March 2015.
Also doubtlessly weighing on oil markets are indicators of slowing financial development and gas demand development, 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, mentioned in a word 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