Oil prices were stable yesterday, partly as a result of supply concerns ahead of the start of U.S. sanctions against Iran’s crude exports, but held back by rising drilling activity in the United States.
Front-month Brent crude oil futures were trading at $79.74 a barrel, 4 cents below their last close at the end of last week, while the U.S. West Texas Intermediate (WTI) crude futures were at $69.07 a barrel, 5 cents below their last settlement. U.S. sanctions against Iran’s oil exports will start on November 4.
While the Organization of the Petroleum Exporting Countries (OPEC) agreed in June to boost supply to make up for expected Iran disruptions, an internal document reviewed by Reuters suggested that OPEC is struggling to add barrels to the market as an increase in Saudi Arabian supply was offset by declines in Iran, Venezuela and Angola.
Traders said major oil consumers were stockpiling in anticipation of more disruptions. “In China, higher seasonal demand and suspected…
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