Oil prices rose more than 1% on Tuesday.
Analysts expect Iranian exports to drop by anything between 500,000 and 1 million b/d after full United States sanctions are re-imposed on November 5. "The reality is that in August, we do start to see a wind down in gas consumption, and petroleum in general, is seasonally weak".
The President Donald Trump administration has urged all countries to end imports of Iranian oil by November 4 as part of its new policy of hostility towards Tehran after Washington's unilateral exit from the 2015 nuclear agreement.
"Of course, such decisions being taken by the US side are absolutely unfriendly and can hardly be associated with the. constructive atmosphere achieved at the latest meeting of the two presidents", he was quoted by Russian news agency Tass as saying. The agency expects crude production to average 11.7 million bpd in 2019, compared with 11.8 million bpd previously.
Brent Oil Futures for October delivery rose 0.33% to $74 per barrel at 1:02AM ET (05:02 GMT), while Crude Oil WTI Futures for September delivery also went up by 0.12% to $69.09 a barrel, Investing.com reported. US West Texas Intermediate (WTI) crude futures were at $69.35 a barrel, up 18c.
"The US seems hell-bent on regime change in Iran", said Greg McKenna, chief market strategist at futures brokerage AxiTrader.
The reimposed sanctions initially target Iran's U.S. dollar purchases, metals trading, coal, industrial software and its auto sector. Its previous estimate was at 10.79 million barrels per day.
USA crude stocks fell 1.35 million barrels the week ending August 3, falling short of the 3.7-million barrel decline expected by analysts polled by S&P Global Platts, and well below the 6 million-barrel decline reported by the American Petroleum Institute Tuesday evening.
The EU, France, the United Kingdom and Germany said in a joint statement on Monday that they were committed to work on the continuation of Iran's export of oil and gas.
The tariffs by China on USA crude imports have shaken up the markets.
"The market is supported by concerns the sanctions on Iran are going to reduce Iranian supply", said Tony Nunan, oil risk manager at Mitsubishi in Tokyo.
However, Iranian oil exports to its top two customers-China and India-continued to stay high last month.
Syncrude Canada's nameplate capacity stands for roughly 10 percent of the Canadian crude oil supply.
Less than a year after first oil from the USA was imported into India, state-owned Indian Oil Corp (IOC) has signed up to buy crude oil from the U.S. through a term-tender deal, a senior company official said.
Alhajji said "The July production numbers show a large increase in OPEC production close to 300,000 barrels per day, but exports increased only slightly, preventing prices from declining further". As retaliation against Washington, China will impose tariffs of 25 percent on a further $16 billion in USA imports ranging from fuel and steel products to autos and medical equipment.