Oil prices inch up on Iran sanctions, but rising global supply caps market

By  Trend

Oil markets were stable on Wednesday, buoyed by falling supplies from Iran ahead of U.S. sanctions but held in check by rising production outside the Organization of the Petroleum Exporting Countries.

International Brent crude oil futures LCOc1 were at $75.98 per barrel at 0102 GMT, up 3 cents from their last close.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 3 cents at $68.56 a barrel.

Traders said crude prices have been supported by the prospect of U.S. sanctions against Iran, which will start to target its oil industry from November.

Bowing to pressure from Washington, many crude buyers have already reduced orders from OPEC’s third-biggest producer.

Despite Tehran offering steep discounts, the total volume of crude oil, including condensate, to load in Iran this month is estimated at 64 million barrels, or 2.06 million barrels per day (bpd), versus a peak of 92.8 million barrels, or 3.09 million bpd, in April, preliminary trade flows data on Thomson Reuters Eikon showed.