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Oil prices rise up due to U.S. sanctions against Iran

The Address | Benghazi – Libya

SINGAPORE – Oil prices edged up on Wednesday on expectations of tighter markets once U.S. sanctions target Iran’s petroleum industry from next month, although a strong dollar and rising U.S. crude supply curbed gains, Reuters reported.

Brent crude oil futures LCOc1 were at $84.89 per barrel at 0646 GMT, up 9 cents from their last close.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 7 cents at $75.30 a barrel.

Traders said global oil markets remained tense because of the looming U.S. sanctions against Iran’s oil exports, which kick in from Nov. 4.

Brent and WTI earlier this week both reached levels last seen in November 2014, and the two contracts have risen by around 20 and 17 percent respectively since mid-August.

Despite this, traders said prices were held back by a strong dollar .DXY which makes oil imports more expensive for countries using other currencies domestically, as well as by climbing supply in the United States.

U.S. commercial crude inventories rose by 907,000 barrels in the week to Sept. 28 to 400.9 million, the private American Petroleum Institute (API) said on Tuesday. Refinery crude runs fell by 158,000 barrels per day (bpd), API data showed.

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