Oil prices rose on Monday as increased global demand and U.S. efforts to shut out Iranian output using sanctions outweighed drilling data suggesting U.S. shale production would climb. Benchmark Brent (LCOc1) was up 70 cents at $77.81 a barrel by 1150 GMT. U.S. crude (CLc1) was unchanged at $73.80. "Oil prices are starting the week on the front foot in anticipation of reduced supplies from Iran after U.S. sanctions," said Stephen Brennock, analyst at London brokerage PVM Oil Associates. The United States says it wants to reduce oil exports from Iran, the world's fifth biggest oil producer, to zero by November, in a move that will oblige other big producers such as Saudi Arabia to pump more. But Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries have little spare capacity and oil demand has risen faster than supply over the last year. At the same time, exports from several OPEC producers, including Venezuela and Libya, have been falling.
Demand-side optimism picked up after the Caixin-Markit China manufacturing purchasing managers index rose above 50 in March, indicating growth. February’s reading came in below 50, which showed economic contraction.
“We have a bullish setup to the week as U.S. sanctions on Iran and Venezuela — combined with OPEC+ apparent unwavering compliance, although some fissure is arguably appearing at the seems as Russia’s long-term commitment remains a big question — should keep oil prices in check,” said Stephen Innes, head of trading and market strategy with SPI Asset Management.
more detail at source: https://www.marketwatch.com/story/firmer-oil-prices-add-to-best-quarterly-performance-in-nearly-a-decade-2019-04-01