NEW YORK (Reuters) - Oil prices rose on Tuesday on growing supply disruptions in Norway and Libya, but gains were pared after the United States said it would consider requests for waivers from Iranian oil sanctions.
Brent crude futures LCOc1 rose by 64 cents to $78.71 per barrel by 11:38 a.m. EDT (1538 GMT). Earlier, the global benchmark hit a session high of $79.51.
U.S. crude futures CLc1 were up 13 cents at $73.98, after hitting a high of $74.70.
Earlier in the session, prices had been within striking distance of the four-year highs, said Bob Yawger, director of energy futures at Mizuho.
They retreated, however, following a statement by U.S. Secretary of State Mike Pompeo that the United States would consider requests from some countries to be exempted from sanctions on Iranian oil that it will put in effect in November
“That basically took the wind out of the sails from the market,” said Phil Flynn, analyst at Price Futures Group in Chicago.
“But it isn’t unlike anything that they’ve said before. But it all depends on which countries they’re talking about. Is it big buyers of Iranian crude? Is it India?...Is it temporary waivers?”
Last month, the United States said it wanted to reduce oil exports of fifth-biggest producer Iran to zero by November.
Still, supply concerns elsewhere were pushing Brent prices higher.
Hundreds of workers on Norwegian offshore oil and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated oilfield.
Libyan oil production fell to 527,000 barrels per day (bpd) from a high of 1.28 million
