By Dan Molinski and Christopher Alessi 

Oil prices were little changed Monday as investors weighed tightening global supplies due to U.S. sanctions on Iran against increasing worries of an economic slowdown that could put a damper on oil demand world-wide.

Light, sweet crude for November delivery ended 5 cents, or 0.1%, higher at $69.17 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, was 0.1% higher at $79.83 a barrel.

Oil prices had been lower for most of the New York trading session due to a combination of worries over the global economy, Italy's financial health and U.S.-China trade tensions, all of which helped strengthen the dollar. Oil prices often move in the opposite direction of the dollar as barrels of oil are negotiated in greenbacks. The WSJ Dollar Index rose 0.3% Monday.

Energy analysts at Baird noted Monday's trading action showed oil prices have struggled to fully shake off a recent rise in risk aversion among investors.

"Crude continues to sputter amid chop in risk," Baird said. "Energy investors search for a catalyst for oil after bearish weekly inventory data forced WTI [West Texas Intermediate] back below $70 a barrel for the first time since September 19."

The Energy Information Administration last week reported U.S. inventories of crude oil climbed by 6.5 million barrels in the previous week, which was four times more of an increase than analysts were expecting, and put U.S. supplies about 2% above the five-year average.

But U.S. oil prices ended Monday's session a fraction higher as investors began to refocus on U.S. oil sanctions against Iran that are set to take effect in less than two weeks, which could cause global supplies to tighten.

Treasury Secretary Steven Mnuchin said Sunday it would be more difficult for importers of Iranian crude to obtain waivers from the U.S. to bypass oil sanctions set to be implemented on Iran from Nov. 4.

"Comments from the U.S. Treasury secretary that waivers for buyers of Iranian oil will only be granted in exceptional cases is a supporting element" for crude prices Monday, said Giovanni Staunovo, commodities analyst at UBS Wealth Management.

President Trump in May pulled the U.S. out of a 2015 international agreement to curb Iran's nuclear program, setting the stage for the reimposition of sanctions. Iranian production and exports have been falling steadily since then, as buyers prepare for the sanctions for take effect.

The International Energy Agency has said Iranian supply fell to a 2 1/2-year low in September as buyers continued to reduce their purchases before the November deadline. Crude production fell by 180,000 barrels a day month-on-month, to stand at 3.45 million barrels a day last month, the agency said.

However, overall the "decrease in oil prices in mid-October was largely attributable to the withdrawal of speculative financial investors," analysts at Commerzbank wrote in a daily note Monday.

Oil-market observers were looking ahead this week to weekly U.S. oil inventory data to see if a string of four straight, bearish weekly increases in stockpiles will continue.

Among refined products, gasoline futures for November delivery dropped 0.4% to $1.9067 a gallon. Diesel futures rose 0.7%, to $2.3181 a gallon.

Write to Dan Molinski at Dan.Molinski@wsj.com and Christopher Alessi at christopher.alessi@wsj.com

(END) Dow Jones Newswires

October 22, 2018 16:09 ET (20:09 GMT)

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