Investing.com - Oil traders are likely to stay focused on potential disruptions to global crude supplies in the upcoming week, as looming U.S. sanctions on Iran are widely expected to lead to a tighter market.
The sanctions, which from November will include Tehran's oil exports, are being reinstated after U.S. President Donald Trump pulled out of the Iran nuclear deal earlier this year.
Iran is the third-biggest producer in the Organization of the Petroleum Exporting Countries (OPEC), supplying around 2.5 million barrels per day (bpd) of crude and condensate to markets this year, equivalent to around 2.5% of global consumption.
Meanwhile, fresh weekly data on U.S. commercial crude inventories - which come out one day later than usual due to Monday's Labor Day holiday - will capture the market's attention.
U.S. oil inventories have shown signs of tightening in recent weeks.
Market players will also focus on weekly rig count data for further signals on U.S. output levels.
Data released Friday showed that the U.S. rig count, an early indicator of future output, rose by 2 to 862 last week, according to oilfield services firm Baker Hughes.
Elsewhere, markets will also stay attuned to the next potential steps in the tit-for-tat trade dispute between the U.S. and China following a report that the Trump administration was prepared to impose tariffs on an additional $200 billion of Chinese goods as soon as this week.
Economists are worried that rising trade barriers between the world's major economies will drag on global growth and, by extension, erode energy demand.
Oil settled lower on Friday. Prices, however, posted gains for the week as well as the month.
West Texas Intermediate crude for October delivery dipped 45 cents, or around 0.6%, to settle at $69.80 a barrel on the New York Mercantile Exchange.
Despite Friday's losses, the U.S. benchmark ended the week 1.6% higher and finished the month of August with a rise of about 1.5%.
Brent, the global benchmark, declined 38 cents, or 0.5%, to $77.64 a barrel on the ICE Futures exchange.
The contract saw a weekly rise of 2.1% and a monthly climb of about 4.3%.
Ahead of the coming week, Investing.com has compiled a list of the main events likely to affect the oil market.
Monday, September 3
Markets in the U.S. will remain closed for Labor Day.
There will be no settlement price for New York-traded oil contracts.
Brent on the ICE Futures Europe exchange will be open for trading, but settle an hour early.
Wednesday, September 5
The American Petroleum Institute is to publish its weekly update on U.S. oil supplies.
Thursday, September 6
The U.S. Energy Information Administration will release its weekly report on oil stockpiles.
Friday, September 7
Baker Hughes will release weekly data on the U.S. oil rig count.