Crude oil prices moved higher on Monday, lifted by a report that showed crude production in Saudi Arabia unexpectedly dipped in July.
Saudi Arabia reportedly pumped 10.3 million barrels per day (bpd) of crude in July, down about 200,000 bpd from a month earlier.
Meanwhile, U.S. sanctions on Iran would take effect at 12:01 AM ET on Tuesday, following President Donald Trump signing an executive order to reimpose sanctions on Iran’s energy sector. The move is expected to make a severe impact on global crude supply.
According to Bloomberg, Beijing has declined a request by U.S. envoys to stop importing crude oil from Iran.
Friday’s report from Baker Hughes that said U.S. energy companies cut two oil rigs last week contributed as well to oil’s rise.
Crude oil futures for September ended up $0.52, or 0.80%, at $69.01 a barrel.
On Friday, crude oil futures ended down $0.47, or 0.70%, at $68.49 a barrel, after data showed oil output in Russia to have increased sharply by 150,000 barrels per day in July, compared to a month earlier. Concerns about a likely
drop in demand for crude amid escalating U.S.-China trade war weighed as well.