Benchmark Brent crude oil futures on Tuesday were 1.5 percent higher at $74.80 a barrel.
Today, the bulls jumped in after President Donald Trump tweeted that the sanctions were "the most biting sanctions ever imposed". On the other hand, a reduction in supply as a result of USA sanctions on Iran (which will reduce supply), is providing support on moves lower. However, they were still among the lowest this year because of a drop-off in demand from the country's smaller independent, so-called "teapot" refineries.
West Texas Intermediate crude for September delivery traded at $69.11 a barrel on the New York Mercantile Exchange, down six cents, at 7:55 a.m.in London. Vladimir Putin stated on Tuesday that he is deeply disappointed by the United States sanctions on Iran. As a result, more US crude oil would be shipped to Asian market.
Looking ahead to 2020-21, Della Vigna anxious that the impacts of the slowing pace of new projects will start to be felt, and US shale will begin to decline; however, he said now is a ideal opportunity for "big oil" firms to negotiate better tax terms with governments and "do more activity - that doesn't necessarily mean more money".
Crude oil continues to rise bullish as traders remained anxious over revived USA sanctions against major crude exporter Iran. The US government has said it wants as many countries as possible to stop buying Iranian oil.
On top of the impact on the broader global economy, there is growing worry in the crude oil market about Chinese demand. Saudi Arabia reportedly pumped 10.3 million barrels per day (bpd) of crude in July, down about 200,000 bpd from a month earlier.More news: Paul Pogba wants out of Manchester United as deadline day drama looms
Output was expected to rise 1.31 million barrels per day (bpd) to 10.68 million bpd in 2018, lower than last month's forecast of growth of 1.44 million bpd to 10.79 million, according to the U.S. Energy Information Administration.
The WTI Crude Oil market was very noisy during trading on Thursday but did offer a bit of stability coming in at support.
The market appeared to move past the renewal of USA sanctions against Iran, the world's fifth largest oil producer, which underpinned crude futures in the previous session.
Iranian oil production fell to 3.72 million b/d in July - the lowest since January 2017, according to Platts estimates.
Beyond the sanctions, the oil market was focusing on the US market, where the American Petroleum Institute said on Tuesday that crude inventories fell by 6 million barrels in the week to August 3 to 407.2 million. It has also ushered in new confidence for global LNG producers and talk of pushing ahead more greenfield LNG projects to meet this demand, a possibility unheard of just a year ago.
Analysts expect Iranian exports to drop by anything between 500,000 and 1 million b/d after full U.S. sanctions are re-imposed on November 5.