Negative pressure on the price of oil could emerge from decisions by the office of the U.S. Trade Representative, which has scheduled hearings this week on additional trade pressure on China.
In the aftermath of United States withdrawing from the Iran Nuclear Deal in May, it seems that it will soon start affecting India oil imports from Iran as India's crude oil imports from Iran fell in the first half of August, media reported on Thursday.
Oil prices also drew support from the prospect of a drop in crude exports from Iran in response to new US sanctions on the No. 3 producer in the Organization of the Petroleum Exporting Countries. The data is expected to show shrinking reserves of oil in the USA as the government continues to sell off crude oil.
This week's report was bullish for crude, said Societe Generale oil analyst Michael Wittner.
US crude imports last week eased by 249,000 barrels per day to 8.3 million bpd.
Signs of tighter supply countered concern about slowing oil demand stemming partly from the trade dispute between the United States and China, the world's two largest economies.
Smoke from BC wildfires prompts air quality advisories across Western Canada
Officials said an increase in wildfire activity in southeastern B.C. was also a concern. The model image below shows smoke in the area over Kentuckiana.
However, this week, because of falling USA crude oil inventories, the price of U.S. crude has once again risen. The crude oil benchmark is now trading at $66.90 per barrel.
The sufficient supply of West African crude cargoes has been limited by a slowdown in oil demand from Asia, having little to no effect on global oil prices.
"With oil export sanctions now three months out, we expect exports to fall by more than 500,000 bpd by the end of 3Q", Jefferies said.
Crude stocks at the Cushing, Oklahoma delivery hub rose by 772,000 barrels. Workers at Total SA's North Sea oil and gas fields will go ahead with scheduled strikes after talks broke down.
On the geopolitical side of the equation, the trade war between the USA and China, the two largest economies in the world, is starting to weigh heavily on the energy sector.
According to a report by the Oxford Institute for Energy Studies, Saudi Arabia is looking at capping upper limits on prices to allay customer concerns and is also putting a floor to ensure revenues stay high.