Oil prices edged lower on Monday as the focus turned to oversupply worries, moving away from escalating tensions between the U.S. and Iran, which had driven prices higher early in the session.Brent crude oil LCOc1 settled down 1 cent at $73.06 a barrel. U.S. crude CLc1 was down 37 cents at $67.89 a barrel, down from a session high of $69.31.
The market gave up gains as attention returned to oversupply risk. Saudi Arabia and other large producers are ramping up production to offset losses from Iran that are likely to come with the approach of the November deadline for other countries to comply with U.S. sanctions on crude sales from Iran, said Phil Flynn, an analyst at Price Futures Group in Chicago.U.S. crude inventories at the delivery hub at Cushing, Oklahoma gained in the most recent four days to Friday, according to information supplier Genscape, traders said. On a weekly basis, stockpiles at the hub were expected to fall for the 10th consecutive week, traders said.The market was also weighed down by concerns about the impact on global economic growth and energy demand of the escalating trade dispute between the United States and its trading partners. Reuters