Talk of a sharp drop in Iranian oil exports and the likelihood of the first U.S. rate cut in a decade are helping crude prices catch a bid.
The gains, however, could fizzle before the end of the week on demand worries.
Iranian oil exports have dropped in July to as low as 100,000 barrels per day due to sanctions and rising tensions with the United States and Britain, Reuters reported, quoting an industry source and tanker data.
The drop in exports from OPEC-mamber Iran could deepen the impact of an OPEC-led supply-cutting pact.
Expectations that the Federal Reserve will cut its key rate by at least 25 basis points at its July 30-31 policy meeting has also powered a solid run across markets this month, boosting assets from stocks to commodities.
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