Oil prices buoyed by tighter supply outlook
Opec production hit a 2018 high, but the threat of US sanctions on Iran remains the key factor for prices
New York — Oil prices rose on Monday, as traders kept the focus on supply disruptions and the possible hit to crude output from US sanctions on Iran. October Brent crude futures were up 76c at $75.52 a barrel by 3.57pm GMT. The September contract expires on Tuesday. US crude futures rose $1.51 at $70.21 a barrel. The market held gains even after a Reuters survey showed Opec increased production in July. Opec hiked production 70,000 barrels a day to 32.64-million barrels a day, a 2018 high. Further gains could offset production outages and pressure prices. Prices remain buoyed by a tight supply outlook, with global inventories down from record highs in 2017 and US inventories at a three-year low, said Gene McGillian, vice-president of market research at Tradition Energy in Stamford, Connecticut. "If you take a step back and look at where global inventories and US inventories are, you’re seeing a tighter picture than where we were a year ago," McGillian said. "Overall, I think the mar...
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