Investing.com - Oil prices advanced on Tuesday as Iran’s crude oil exports dropped further, Reuters reported citing tanker data and an industry source.
Crude Oil WTI Futures for November delivery gained 0.43% to $74.61 a barrel by 1:20AM ET (05:20 GMT) on the New York Mercantile Exchange, while London’s Intercontinental Exchange showed that Brent Oil Futures for December delivery also rose 0.5% to $84.31 per barrel.
The Islamic Republic for Iran exported 1.1 million barrels per day of crude in the first week of October, according to the report, which also added that oil buyers are now weighing options other than Iranian crude before U.S. sanctions on Iran hits on Nov 4.
Citing an unnamed industry source, the article said October shipments were so far below 1 million bpd.
"Iranian barrels are declining fast, and Saudi Arabia's promise to balance will face a reality check in a month's time," J.P.Morgan said in an oil market note.
In other news, the International Monetary Fund (IMF) said in its World Economic Outlook report on Tuesday that it expected oil prices to trade at an average of $68.78 per barrel in 2019 and $60 in 2023.
"Oil prices are expected to average $69.38 a barrel in 2018. Global oil supply is expected to gradually increase over the forecast horizon, lowering oil prices to $68.76 a barrel in 2019, and further to about $60 a barrel in 2023," the report said.
Oil prices were trading lower in the previous session as the administration of U.S. President Donald Trump appeared to be willing to let Tehran sell some oil after all come Nov. 4, compared to its original zero-exports target.
A U.S. government official said last Friday that the Trump administration is considering waivers on sanctions. Following the news, India’s Oil Minister Dharmendra Pradhan reportedly said that the country would continue to purchase Iranian crude in November and that two firms have ordered barrels from Tehran.