WTI trades ~$0.50 higher at writing, with.......>

OIL: WTI trades ~$0.50 higher at writing, with Brent ~$0.80 better off.

- The escalation of tensions in the Gulf surrounding the Iranian seizure of a UK

flagged tanker on Friday has underpinned oil in early trade this week. The UK is

reportedly considering a wide range of actions, including sanctions against

Iran. Iran's Foreign Minister stressed that the "UK must cease being an

accessory to the Economic Terrorism of the U.S.," and later noted that only

"prudence & foresight" could alleviate tensions between his country & Britain.

- BBG has reported that "millions of barrels of Iranian oil are piled up in

China's ports." The method employed avoids U.S. sanctions, but the spectre of

the stockpiles still hangs over the market.

- Elsewhere, Libya declared force majeure at its Sharara oilfield, but has

reportedly restarted production, although force majeure is still to be lifted.

Also on the supply front, protesters have shut down Bantan Flow Station in

Diebiri, Nigeria, over "alleged marginalisation by the state government."

- Finally, Baker Hughes Rig Count data showed 5 fewer active oil rigs in the

U.S. in the most recent sample week.