Investing.com – Oil prices climbed marginally on Tuesday morning in Asia as investors took a step back to consider U.S. inventories and output by the world’s three largest producers.
for October delivery were basically flat, up 0.03% to $67.56 at 10:55PM ET (02:55 GMT). , traded In London, were up 0.17% to $77.50.
Both oil benchmarks were down from a day earlier after pulling back from a short rally in U.S. trading early Monday.
Investors are focused on Bloomberg data that suggests crude inventories in the U.S. are rising despite a lowering rig count. The total rig count in the U.S. has dropped by two to 860, according to energy services company Baker Hughes.
Still, investors are poised for the likelihood of higher oil prices as U.S. sanctions against Iran, the fifth largest oil exporter in the world, take effect in November. Energy consultancy FGE has reported that India, Japan and South Korea have been among the oil buyers cutting back on Iran crude purchases.
One strategist from French bank BNP Paribas (PA:) said during the Reuters Global Oil Forum that oil prices could be pushed past the $80 mark by the combination of sanctions on Iran and production instability in Libya and Venezuela.
U.S. Energy Secretary Rick Perry met on Monday with officials from Saudi Arabia and will meet officials from Russia on Thursday. Saudi Arabia, Russia and the U.S. are the largest producers of oil.
The three currently produce about a third of global consumption. Output by these three producers has increased by 3.8 million barrels per day (bpd), which is more than Iran produces. Iran’s production has peaked at 3 million bpd over the past three years.
Perry reportedly wants to encourage them to keep output up even as sanctions against Iran kick in.
Saudi Arabia said last Wednesday that the country is seeking to keep oil prices between $70 to $80.
OPEC and non-OPEC officials will meet later in September to discuss any increases in output, after the groups decided in June to boost output moderately.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.