Oil prices edged higher on Monday, extending gains to a third successive session, despite lingering concerns about the outlook for economic growth and worries about excess crude supply in the market.
At the same time, traders also appeared to be thinking about the possible impact of U.S.’ sanctions against Iran on global crude supply.
There are possibilities of supply disruptions in Libya as well, amid fresh protests by workers at the Zawiya oil export terminal which could cut oil production from Libya’s Sahara oil field.
Meanwhile, according to reports, South Korea is in talks with the U.S. government to continue importing Iranian condensate as it is hard to find alternative sources due to limited suppliers.
Last Friday, Baker Hughes released a report that showed oil rig count in the U.S. remained unchanged in the week.
Crude oil futures for September delivery ended up $0.52, or 0.8%, at $66.43 a barrel. On Friday, crude oil futures had ended up $0.45, or 0.7%, at $65.91 a barrel.
Meanwhile, Brent crude for October edged up $0.38, or 0.5%, to $72.21 a barrel.
Crude oil prices had eased during the earlier part of the previous week amid concerns about a likely fall in demand and on an unexpected jump in U.S. crude inventories.
Data released by the Energy Information Administration last Wednesday showed U.S. crude oil inventories to have risen by 6.8 million barrels in the week ended August 10, as against expectations for a drop of about 2.4 million barrels.