Crude oil prices edged up marginally on Tuesday, with traders weighing the prospects of a supply shortage due to upcoming U.S. sanctions against Iran.
The signal from OPEC members and top non-OPEC oil producers that they are in no rush to increase output aided oil’s uptick.
U.S. President Donald Trump had called on OPEC members and top oil producers Russia and Saudi Arabia to increase output to make up for the loss of Iranian oil. However, the meeting of the Organization of the Petroleum Exporting Countries and non-OPEC members including Russia, over the weekend, ended with no formal recommendation for any additional supply boost.
On Sunday, Saudi Energy Minister Khalild al-Falih brushed aside Trump’s call to reduce prices, saying he does not influence prices.
Meanwhile, traders looked ahead to weekly crude inventories report from the American Petroleum Institute, due later in the day, and the official data from the U.S. Energy Information Administration, due on Wednesday.
Crude oil futures for November delivery ended up $0.20, or 0.3%, at $72.28 a barrel. On Monday, crude oil futures ended up $1.30, or 1.8%, at $72.08 a barrrel.
It is expected that Iran’s crude oil exports will drop to as low as 1 million-1.3 million b/d when further U.S. sanctions on Iran’s energy sector take effect on November 4.