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Oil futures traded higher on Monday, continuing the recent uptrend in US and international contracts, as the threat of supply disruptions led to higher crude prices.
Investors are also awaiting notice of Monday's Joint Technical Committee meeting, which could provide more details on the output of major producers in the Organization of Petroleum Exporting Countries and non-OPEC countries, including Russia. A Reuters report said that one of the main themes of the meeting was the management of expected production increases after agreeing to reduce some of the brakes on production.
October futures on West Texas Intermediate crude
CLV8, + 0.74%
The US benchmark rose 56 cents, or 0.8%, to $ 69.54 a barrel on the New York Mercantile Exchange, after finishing last week with a gain of 1.8% for the contract. more active.
November Brent
LCOX8, + 0.73%
added 63 cents, or 0.8%, to $ 78.72 per barrel on ICE Futures Europe, after a weekly increase of 1.6% for the global benchmark.
In late August, the Joint Ministerial Follow-up Committee declared that countries participating in an oil production reduction pact implemented in early 2017 fell to 109% in July, compared with 121% in June and 147%. in May.
Monday's meeting was intended to discuss a better coordination of an increase of one million barrels per day, agreed at the end of June, which revived production to the level promised in a January 2017 agreement on restrictions on production.
In addition, market players are anticipating US sanctions against Iran specifically targeting oil, which is expected to come into effect in early November after President Trump's decision in May to withdraw from the nuclear deal with Tehran. Sanctions against Iran, OPEC's third largest oil producer, is expected to directly affect global crude exports.
Lily: 3 ways Iran could react to sanctions and what it means for oil prices
Traders have also continued to monitor the impact of the energy market after the passage of Hurricane Florence, which continues to rain the Carolinas and cause dangerous floods, while the storm has has been transformed into a tropical depression.
The threat of new US tariffs on Chinese products, which could hurt oil demand, was also being followed by investors in crude oil.
Trump is expected to impose a $ 200 billion tariff on Chinese products, which could disrupt the hope that the world's largest economies can amicably resolve a trade dispute and alleviate fears health market.
Peter Cardillo, chief economist at Spartan Capital Securities, said the crude gained a number of factors, including technical factors. He said "strengthen technical factors like Brent [and the] The WTI price range is widening, reaching levels that suggest a stronger rebound, "he wrote in a research note on Monday, referring to the price differential between US oil and the Brent international contract, which exceeds 9 dollars. "We continue to see WTI grow in the $ 75 to $ 80 range," Cardillo wrote.
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