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Oil prices mixed on Canadian outage update, U.S. sanctions on Iran

Reuters  |  NEW YORK 

By Ayenat Mersie

(Reuters) - prices were mixed on Monday, with U.S. crude lower on about the timeline for the end of a major Canadian production outage, while global benchmark Brent gained on looming sanctions on and falling production in

U.S. light crude futures were down 33 cents to $73.46 by 12:17 p.m. EDT (1617 GMT). Brent was up 74 cents at $77.85.

An updated timeline on the restart of the sands facility added a jolt of volatility into U.S. crude trading, said John Kilduff, partner at in

Brent, meanwhile, was well supported. The says it wants to reduce exports from Iran, the world's fifth-biggest producer, to zero by November, which would oblige other to pump more.

"It's telling that the multinationals are taking this sanctions very seriously and are preparing to pull out of That's really crystallizing the loss of production we're facing," said Kilduff.

In Canada, majority stakeholder said on Monday that some production would come back online in July, sooner than expected. It will not resume full operations until September, however, which is later than expected.

The 360,000-barrel-per-day (bpd) facility in northern has been shut since late June, cutting oil flows into Cushing, Oklahoma, the delivery point for U.S. crude futures.

Stocks in rose slightly between Tuesday and Friday, according to market intelligence firm Genscape, according to analysts who saw the data.

inventories hit a three-and-a-half-year low last week.

The market has grown concerned that if the Saudis offset the losses from Iran, it will leave at risk of further production declines in countries like and

"If the Saudis and others replace the losses from Iran, there will be basically no spare capacity left," said.

Saudi Arabia, fellow members of the Organization of the Petroleum Exporting Countries (OPEC) and allies including agreed last month to increase output to dampen price gains and offset global production losses in countries including

Libyan has halved in five months, falling to 527,000 barrels per day (bpd) from a high of 1.28 million bpd in February, the of the National Oil Corporation, Mustafa Sanalla, said on Monday.

"Tomorrow it will be less and the day after tomorrow less again. And we are going lower," Sanalla said.

(Additional reporting by in London and Aaron Sheldrick in Tokyo; Editing by and David Goodman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 09 2018. 22:35 IST