Investing.com - Oil prices rose on Monday as Baker Hughes data released on Friday showed working oil rigs in the U.S. fell by nine to 860 last week, the biggest drop since May 2016.
Brent Oil Futures for October delivery went up 0.4% to $75.03 at 12:17PM ET (04:17 GMT), while Crude Oil WTI Futures for October delivery also rose 0.52% to $68.18.
Meanwhile, reports that the U.S. and Mexican governments are nearing a breakthrough on a trade standoff were also in focus.
The two countries are poised to resolve their bilateral differences over the North American Free Trade Agreement (NAFTA) as soon as Monday, reports suggested.
“Falling U.S. rig counts and last week’s decline in U.S. inventories are supporting oil prices amid a protracted U.S.-China trade war that could dampen global growth and weigh on oil demand,” said Stephen Innes, head of trading for the Asia Pacific region at Oanda Corp. “Despite growing concerns about a potential oversupply, the markets will continue to get a fillip from U.S. sanctions against Iran.”
On the other hand, the crude markets also draw support from U.S. sanctions against Iran, which from November will include oil exports.
The sanctions are being reinstated after U.S. President Donald Trump pulled out of the Iran nuclear deal earlier this year.
Iran is the third-biggest producer in the Organization of the Petroleum Exporting Countries, supplying around 2.5 million barrels per day (bpd) of crude and condensate to markets this year, equivalent to around 2.5% of global consumption.
Most analysts expect this figure to fall by at least 1 million bpd once sanctions kick in.