Oil rises as markets tighten ahead of Iran sanctions

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* U.S. crude inventories at lowest level since 2015

* Tighter U.S. market comes ahead of new Iran sanctions

* U.S. oil output, storage & drilling: https://tmsnrt.rs/2wc5wpr

By Henning Gloystein

SINGAPORE, Sept 24 (Reuters) - Oil prices rose on Monday asU.S. markets tightened just weeks ahead of Washington's plan toimpose new sanctions against Iran.

Brent crude futures LCOc1 were at $79.74 per barrel at0036 GMT, up by 94 cents, or 1.2 percent.

U.S. West Texas Intermediate (WTI) crude futures CLc1 roseby 74 cents, or 1.1 percent, to $71.52 a barrel.

The market was "increasingly concerned about dwindling(U.S.) inventories," ANZ bank said on Monday.

U.S. commercial crude oil inventories C-STK-T-EIA are attheir lowest level since early 2015. And while output C-OUT-T-EIA remains around the record of 11 million barrelsper day (bpd), recent subdued U.S. drilling activity pointstowards a slowdown. urn:newsml:reuters.com:*:nL2N1W7135

The tightening U.S. market came ahead of sanctions thatWashington plans to implement against Iran's petroleum exportsfrom early November, which many analysts expect to result in adrop of more than 1 million bpd of crude exports. urn:newsml:reuters.com:*:nL3N1W042S

The Middle East dominated Organization of the PetroleumExporting Countries (OPEC), of which Iran is a member, as wellas top producer Russia are discussing raising output by 500,000bpd to counter falling supply from Iran, although thediscussions are not finalised. urn:newsml:reuters.com:*:nL8N1W74GU

GRAPHIC: U.S. oil drilling, production & storage levels png   https://tmsnrt.rs/2OKP4nJ
(Reporting by Henning Gloystein; editing by Richard Pullin) ((henning.gloystein@thomsonreuters.com; +65 6870 3263; ReutersMessaging: @hgloystein))

This article appears in: Stocks , World Markets , Economy , Oil , Commodities

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