Oil prices edged higher on Monday as falling Iranian output and views that the oil market will tighten further helped investors shrug off fears of higher supply from OPEC and the United States.
Iranian oil exports are falling more quickly than many had initially expected as there is pressure on Iran’s customers since May, to cut their purchases of Iranian oil and freeze out the oil producer from the world oil market.
Brent crude oil was up 39 cents or half a percent at $78.03 a barrel while U.S. crude futures were up 0.13 percent at $69.86 a barrel.
Oman’s Oil Minister Mohammed bin Hamad al-Rumhi reportedly said today that he expects oil prices to remain between $70 and $80 a barrel this year.
Saudi Arabia, Kuwait and the United Arab Emirates are the only three countries that have the capacity to increase oil production, he said at an oil conference in Oman.