Oil rises on Iran sanctions, lower U.S. fuel inventories

Oil prices rose on Thursday, extending gains on growing evidence of disruptions to crude supply from Iran and Venezuela and after a fall in U.S.
crude inventories. Benchmark Brent crude oil was up at 77.74 dollars.
U.S. light crude was 40 cents higher at 69.91 dollars.
Iranian crude exports are likely to drop to a little more than 2 million barrels per day (bpd) in August, against a peak of 3.1 million bpd in April, as importers bow to American pressure to cut orders. The Organisation of Petroleum Exporting Countries (OPEC), where Iran is third-biggest producer, will discuss in December.
It will parley whether it can compensate for a sudden drop in Iranian supply after sanctions start in November, the head of Iraq’s state oil marketer SOMO, Alaa alYasiri, said on Wednesday.
Crude exports from crisisstruck OPEC member Venezuela have also fallen sharply, halving in recent years to about 1 million bpd.
Official U.S. oil inventory data on Wednesday also helped the bullish trend.
U.S. commercial crude inventories fell by a larger than expected 2.6 million barrels in the week to Aug.
24, to 405.79 million barrels, the Energy Information Administration said.
The International Energy Agency (IEA) has warned of a tightening market towards the end of the year because of falling supply in countries such as Iran and Venezuela combined with strong demand, especially in Asia.