Investing.com - Oil prices were mixed on Tuesday as the crude supply is expected to lower due once U.S. beings imposing economic sanctions against Iran in November.
Brent Oil Futures for October delivery dropped by 0.07% to $72.16 per barrel at 1:05AM ET (05:05 GMT), while Crude Oil WTI Futures for October delivery rose by 0.09% to $65.48 a barrel.
Traders expect a drop of crude supply in November when the U.S. sanctions against Iran will take effect. U.S. offered on Monday 11 million barrels of crude from its Strategic Petroleum Reserve for delivery from Oct. 1 to Nov. 31 to prevent a huge jump in oil prices once the sanctions kick in.
French oil giant Total, one of the largest European buyers of Iranian oil, said it will halt imports and abandon Iranian projects for operations in the U.S.
Meanwhile, China will use oil tankers from Iran to purchase its crude and has cut imports of U.S. oil amid a trade war with Washington. The two are set to have a trade talk on Tuesday and Wednesday, but Trump said in an interview with Reuters that he does not expect much to happen at the meeting. The US is expected on Thursday to impose 25% tariffs on an additional $16 billion in Chinese imports, and Beijing has threatened to retaliate with 25% tariffs as well.
In other news, Saudi Arabia might be seeking to expand its oil production by building an oil port in Yemen’s al-Mahra governorate, where the Saudi-led coalition troops are present. Yemen has resumed its oil exports amid humanitarian crisis and wars.