TEHRAN, Young Journalists Club (YJC)-Oil rose towards $70 a barrel on Monday, lifted by a drop in drilling activity in the United States and concerns that Washington could reintroduce sanctions against Iran.
U.S. drillers cut seven oil rigs in the week to March 29, bringing the total down to 797, the first decline in three weeks. The rig count is closely watched as an indicator of future U.S. oil output.
Brent crude, the international benchmark, rose 58 cents to $69.92 a barrel at 0850 GMT. It was still below its 2018 high of $71.28 reached on Jan. 25. U.S. crude added 38 cents to $65.32.
Trading volume was lower than normal as many countries were still on Easter holiday.
“The market is set for a re-test of the highs of 2018,” said Olivier Jakob, oil analyst at Petromatrix.
“The Iranian factor is going to be a very significant input for the next four weeks. It is going to be an underlying support for the whole month.”