LONDON • Oil rose yesterday, clawing back some territory after prices fell by the most in a month in the previous session, as the focus returned to supply concerns ahead of a November deadline for US sanctions on Iranian crude.
Brent crude was up 25 US cents at US$78.43 a barrel by 0810 GMT. The global benchmark fell 2 per cent on Thursday after rising on Wednesday to its highest since May 22 at US$80.13.
US West Texas Intermediate (WTI) futures were up 41 US cents at US$69 a barrel after dropping 2.5 per cent on Thursday.
Both futures contracts are set to rise around 2 per cent in the week.
"We think the oil market will have another go at pushing Brent above US$80 a barrel," said Mr Harry Tchilinguirian, an oil strategist at French bank BNP Paribas, at a Reuters Global Oil Forum.
"The looming supply gap that the loss of Iranian oil exports represents is still ahead of us and that early November US deadline to reduced imports to zero is fast approaching."
We think the oil market will have another go at pushing Brent above US$80 a barrel.
MR HARRY TCHILINGUIRIAN, an oil strategist at French bank BNP Paribas, at a Reuters Global Oil Forum.
The United States is renewing sanctions on Iran after withdrawing from a nuclear deal forged in 2015 between Teheran and world powers.
Washington reimposed some of the financial sanctions from Aug 6, while those affecting Iran's petroleum sector will come into force from Nov 4.
Indian refiners, who are traditionally major buyers of Iranian crude, will cut their monthly crude loadings from Iran for this month and next month by nearly half from earlier this year.