Crude oil futures ended higher on Tuesday, snapping a four-session losing streak, with falling output in Iran tightening global crude supply.
Also, with U.S. sanctions against Iran set to come into effect in the first week of November, global crude oil supply may well see a significant drop as exports from Iran are expected to fall by nearly 40%.
U.S. President Donald Trump has been encouraging Russia and Saudi Arabia to increase crude output, but it remains to be seen if that would help make up for the shortfall in supply due to sanctions against Iranian oil.
According to a report from the U.S. Energy Department, U.S. Energy Secretary Rick Perry met with Saudi Energy Minister Khalid al-Falih on Monday in Washington and discussed the state of world oil markets.
Perry will also meet with Russian Energy Minister Alexander Novak, on Thursday in Moscow, to discuss proposals for sharing technologies and boost output, the report said.
Meanwhile, there could be disruptions in supply due to hurricane Florence. It is feared that the hurricane may cause flooding and power interruptions and result in the shutting down of Colonial Pipeline.
Crude oil futures for October ended up $1.70, or 2.5%, at $69.25 a barrel, the highest settlement price in a week.
Crude oil futures for October delivery ended down $0.20, or 0.3%, at $67.55 a barrel.
Markets look forward to the weekly data from the American Petroleum Institute on U.S. stockpiles, due after market hours today.
The official data from Energy Information Administration on crude oil inventories will be out on Wednesday afternoon.