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The global benchmark crude traded at a $10.03 premium to WTI for the same month.

Brent crude futures rose 42 cents to $77.31 a barrel by 1:16 p.m. EDT (1716 GMT).

U.S. President Donald Trump withdrew Washington from the Iranian worldwide nuclear agreement in May and vowed to re-impose sanctions on Iran's financial, automotive, aviation and metal sectors.

"This is the year geopolitics came back to the oil markets and it is back with a vengeance", said Helima Croft, global head of commodity strategy at RBC Capital Markets.

Barrel prices are continuing to move lower in broader markets as USA crude oversupply takes hold. Cutting off Iranian supplies is expected to pose new threats and more volatility to the global oil market. After the United States unilaterally walked away from the Iran nuclear deal, China remained the only certain meaningful customer of Iran capable of ignoring US sanctions and retaliation measures.

Using techniques such as hydraulic fracturing and horizontal drilling, USA oil drillers figured out how to get crude oil from ultradense shale rocks in North Dakota, Texas and Oklahoma.

We've seen a fall-off in prices for the past three weeks as most visible impacts have been priced in as the fear factor subsided.

Oil is poised for the longest weekly losing streak since August as investors focus on Saudi Arabia's pledge to ramp up production at a time of growing economic uncertainty following a global equity rout.

Saudi Arabia Energy Minister Khalid Al-Falih further added that there could be a need for intervention to reduce oil stockpiles after increases in recent months.

However, earlier this week prices fell sharply after the top Saudi energy official said the country had ramped up production and was working with both OPEC and non-OPEC members to make sure to cover any supply disruption.

However, last May U.S. President Donald Trump announced the withdrawal of his country from the JCPOA, under the assumption that Iran secretly develops a nuclear program.

USA crude production is soaring, boosted by technological advances.

Iranian oil is available on the Energy Bourse also for foreign buyers receiving the trade code, according to Deputy Petroleum Minister Ali Kardor. In 2017, exports to India accounted for 18 percent of Iran's total oil exports; Iran is India's third largest source of oil, after Iraq and Saudi Arabia.


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