Oil prices up as investors balance sanctions, oversupply concerns

Oil prices gained about $1 on Tuesday on the impact of the latest US sanctions on Russian oil and the optimism over a potential end to the US government shutdown, although oversupply concerns limited gains.

- 

Brent crude futures settled $1.10 or 1.72% higher to $65.16 a barrel. US West Texas Intermediate (WTI) crude climbed 91 cents or 1.51% to settle at $61.04 a barrel.

Investors continued to assess the fallout from the US sanctions on Russia, and their impact on both crude oil and refined fuel markets.

Russia’s Lukoil declared force majeure at an Iraqi oilfield it operates, sources told Reuters on Monday, marking the biggest fallout yet from the sanctions imposed last month.

Restricted fuel exports due to the sanctions are propping up oil prices in the face of a crude oil glut, PVM analyst Tamas Varga said.