Past year U.S. President Donald Trump withdrew from the 2015 nuclear deal signed with Iran and other world powers and moved to reinstate sanctions against Iran, giving eight countries a six-month window to end their Iranian oil imports. Brent crude gained 36 cents to $70.26 a barrel.
West Texas Intermediate Crude oil futures for June ended down $0.85 or 1.4%, at $61.40 a barrel, thhe weakest settlement price since March 29.
China's crude oil imports in April unexpectedly surged to a record despite refinery maintenance outages and tepid domestic fuel demand, customs data showed, as state-run refiners built up stocks of Iranian crude oil anticipating a sanctions clampdown.
Sources in state-run oil companies said that the Saudi Arabian oil giant has offered to increase crude oil supplies to India by 200,000 barrels a day (bpd) that would meet nearly half of the country's oil imports that was coming from Iran.
Also on April 22, the USA administration said in a statement, in a bid to reduce Iran's oil exports to zero, buyers of Iranian oil must stop purchases by May 1 or would face sanctions.
The United States, which a year ago withdrew from a 2015 Iran nuclear deal with world powers, has told buyers of Iranian oil to stop purchases by May 1 or face sanctions.More news: Adam Sandler's SNL Best Cast of Characters & Skits
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U.S. crude oil inventories decreased during the week ending May 3, the U.S. Energy Information Administration (EIA) said in a report on Wednesday.
U.S. President Donald Trump said on Sunday he would raise tariffs on $200 billion worth of Chinese goods from 10-25 percent by Friday.
While the world may be harbouring supply fears with the sanction on Iran and political crises in Venezuela, stockpiles in the United States may counter such fears.
India is scheduled to receive two crude carriers carrying 4 million barrels of Iranian oil this month.
Crude has retreated around 10% after reaching a six-month high in late April on signs the global supply outlook may not be as tight as previously feared.
USD/JPY: The dollar declined against Japanese yen on Monday, as concerns about a trade dispute between United States and China and wild swings in global stock markets weighed on risk appetite.