"The weakening crude spreads nearly globally in the face of Iran sanctions is likely generating some concern on how strong market really is and if it's ready to rally more", said Scott Shelton, energy futures broker with ICAP in Durham, North Carolina. "Besides, Saudi Arabia has been an active investor in US Treasury bonds since 2004 and, unlike other large holders like Russia, China and Japan, who have sold bonds for the last two years, continued to buy American debt", said Mikhail Mashchenko, an analyst at the social network for investors eToro in Russia and CIS.
The Schork Report Founder Stephen Schork discusses why low oil prices aren't necessarily good for the economy and how high prices are a reflection of a strong economy.
Brent crude rose 63 cents, or 0.8 percent, to settle at $81.41 a barrel, while West Texas Intermediate (WTI) crude ended the session up 14 cents at $71.92 a barrel.
Indian insurers are not offering coverage policies for storage of Iranian oil, an Indian Oil Corp Ltd (IOC) official said, owing to impending United States sanctions on import of crude from Iran, which are expected to kick in on November 4.
At the same conference, India's PM Narendra Modi also sat down with ministers and chief executives of oil companies and sought a review of payment terms for crude oil supplies.
"The oil market is suffering from short supply and this can not be resolved by words".
Crude oil prices are testing the higher side of recent action as Iranian crude exports continue to decline ahead of the US' November 4th deadline for full-scale sanctions on the Middle Eastern country, with reporting data showing Iranian oil exports have declined by half since earlier this year, and with Saudi Arabia tensions on the rise, barrel costs could rip into multi-year highs as supply and demand continue to race to the bottom.
India is the world's third biggest oil consumer and importer.
Zanganeh said the rise of oil prices was a "self-inflicted pain" caused by US sanctions against Iranian energy exports, and could be resolved by lifting the measures.
The largest change is forecast in the Permian Basin of Texas and New Mexico, where output is expected to climb by 53,000 bpd to a new peak of 3.55 million bpd.
"America thinks Saudi Arabia can replace this oil".