Investing.com - Oil prices rose on Monday buoyed by a decline in U.S. oil production and heightened tensions between the U.S. and Iran which could lead to a re-imposition of sanctions on Tehran that would hinder oil exports.
U.S. West Texas Intermediate WTI crude futures tacked on 18 cents or roughly 0.28% to trade at $65.12 a barrel by 04:19 AM ET (08:19 AM GMT).
Brent crude, the benchmark for oil prices outside the U.S. rose 30 cents or 0.43% to $69.64 a barrel.
Prices remained supported after a report showing the first decline in U.S. drilling activity in three weeks last week.
Energy services firm Baker Hughes on Thursday reported that the number of active U.S. rigs drilling for oil fell by seven to 797. The closely watched report was published one day earlier than usual, due to the Good Friday holiday.
The report eased concerns that booming U.S. shale oil production could potentially derail efforts by the Organization of the Petroleum Exporting Countries’ to end a supply glut.
OPEC, along with some non-OPEC members led by Russia, have been restraining production by 1.8 million barrels per day (bpd) to curb the market of excess supply.
The prospect of an extension to OPEC-led production cuts into next year continued to provide support to oil prices.
Prices also found support amid the prospect of a harder U.S. line against Iran following recent criticism by U.S. President Donald Trump of the 2015 international agreement to curb Iran’s nuclear program.
If the U.S. were to pull out of the deal and re-impose economic sanctions on Iran it could impact the oil output of one of OPEC’s largest members.
Trade volumes looked likely to remain low on Monday with markets in Europe shut for the Easter holiday, while U.S. markets were to re-open after the Good Friday holiday.