10/09/2018 17:13
Oil up as U.S. drilling stalls, Iranian sanctions bite
Oil prices rose on Monday as U.S. drilling stalled and investors anticipated lower supply once new U.S. sanctions against Iran’s crude exports kick in from November.
Brent crude oil jumped $1.09 a barrel, or 1.4 percent, to a high of $77.92, but then eased to $77.40 by 1250 GMT. U.S. light crude was 40 cents higher at $68.15.
“A higher oil price scenario is built on lower exports from Iran due to U.S. sanctions, capped U.S. shale output growth, instability in production in countries like Libya and Venezuela and no material negative impact from a U.S./China trade war on oil demand in the next 6-9 months,” said Harry Tchilinguirian, oil strategist at French bank BNP Paribas.
“We see Brent trading above $80 under (that) scenario,” he told Reuters Global Oil Forum.