WTI & Brent sit ~$1.30 & ~$1.70 above their.....>

OIL: WTI & Brent sit ~$1.30 & ~$1.70 above their respective settlement levels,

with U.S.-Iran tensions driving price action in early trade this week. We have

already spoken about the matter in enough detail elsewhere, so won't go over the

same ground here (a complete news summary will be available in our "European

Open" email). Elsewhere, Libya's NOC noted that it is considering halting

production at its Sharara oilfield, which is the largest field in the country,

owing to clashes in the surrounding areas. The NOC is also considering

suspending ops at the Zawiya port & refinery complex. Sunday saw all four of the

country's eastern export ports shuttered by bad weather, with estimates

suggesting that this could run through Tuesday.

- Recapping Friday's releases. The weekly DoE report revealed a much larger than

expected drawdown in headline crude stocks, a draw in stocks at the Cushing hub

and larger than expected builds in both gasoline & distillate stocks. The latest

Baker Hughes rig count revealed 7 fewer active oil rigs in the most recent week.