Brent crude oil prices climbed back above $80 a barrel on Monday as investor focus returned to impending U.S sanctions against Iran.
Traders expect supply to tighten once U.S. sanctions against Iran’s crude exports take effect on November 4.
Global benchmark Brent crude oil traded up by 22 cents or 0.28 percent at $80.10 a barrel while U.S. West Texas Intermediate (WTI) crude futures were up 32 cents at $69.44 a barrel.
The Organization of the Petroleum Exporting Countries and allies agreed in June to boost supply in a bid to offset losses caused by sanctions on Iran.
Nevertheless, concerns persist that OPEC members do not have enough spare production capacity to deploy quickly enough to weather the effects of the Iran sanctions.
Meanwhile, U.S. Treasury Secretary Steven Mnuchin reportedly said on Sunday that it would be harder for countries to get sanction waivers than it was during the previous Obama administration.