Crude records monthly gain

Bloomberg

Crude rose this month as sanctions on Iranian oil stoked concern that supplies will contract, overshadowing speculation that a US-China trade war will weaken demand.
Futures in London settled 4.3 percent higher in August, the biggest monthly gain since April and US crude also rose for the month. Yet, both benchmarks faltered as Saudi Arabia was said to raise its crude output in August from July levels.
“You are seeing month over month gains, but I am seeing this as a range-bound market,” said Rob Haworth, who helps oversee $151 billion at US Bank Wealth Management in Seattle. “Saudi Arabia and Russia are increasing production, US production could increase, that ultimately limits the upside here.”
President Donald Trump reimposed sanctions on Iran, pulling the US out of the nuclear accord with the Islamic republic in May, despite opposition from allies, China and Russia.
Brent, the global benchmark, is more vulnerable than West Texas Intermediate crude to any impact on Iranian supplies. Both benchmarks have gained this month as American stockpiles shrink and domestic production plateaus.