Oil prices rose sharply on Monday as Saudi crude production unexpectedly dipped in July and American shale drilling appeared to plateau.
Data from energy services firm Baker Hughes showed that U.S. energy companies cut two oil rigs in the week to August 3, bringing the total oil-rig count down to 859.
Top crude exporter 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, a U.S. Treasury official said that so-called “snapback” sanctions against major oil exporter Iran would be reimposed at 12:01AM ET on Tuesday.
Beijing has declined a request by U.S. envoys to stop importing crude oil from Iran, the Bloomberg reported, citing sources. This is a major setback in U.S. President Donald Trump’s quest of cutting Iranian oil exports to zero by Nov. 4.
Spot Brent crude oil futures were up 1.09 percent at $74.01 a barrel while U.S. West Texas Intermediate crude futures were up 1.45 percent at $69.50 a barrel.