SINGAPORE (Reuters) – Oil markets were again strong on Tuesday, with Brent crude holding over $ 85 and reaching close to four-year highs the day before as markets prepare for a tighter supply as sanctions on Iran hit next month ,

FILE PHOTO: Pump lifters working in front of an oil rig in an oil field in Midland, Texas USA August 22, 2018. REUTERS / Nick Oxford / file photo

The Brent Crude Oil Futures LCOc1 international benchmark stood at $ 85.03 a barrel at 0523 GMT, up 5 cc from the last close and not far from the high of $ 85.45 reached in the previous session since November 2014.

Brent has risen by about 20 percent since the last lows in August.

The West Texas Intermediate (WTI) Crude Oil CLc1 rose by 25 cents, or 0.3 percent, to $ 75.55 a barrel.

WTI has risen by about 17 percent since mid-August.

The sentiment was lifted by a last-keep deal to save NAFTA as a trilateral pact between the United States, Mexico and Canada, and save a $ 1.2 trillion open-trade zone that is about to collapse was standing.

Essentially, the threat of US sanctions against the Iranian oil industry, which at its most recent peak this year brought nearly 3 percent of the world's nearly 100 million barrels of daily consumption, pushed oil markets higher.

Trading data in Refinitiv Eikon showed that Iran's sea exports totaled only 1.9 million barrels per day in September, its lowest level since mid-2016.

"Oil prices continue to rise, helped by the impending Iran embargo and related concerns about supply," said Norbert Rücker, head of commodities research at Swiss bank Julius Baer.

"The supply situation indeed looks fragile, as an additional shortage, such as a worsening situation in Venezuela, would reduce oil supplies."

HSBC said in the outlook for the fourth quarter of the Global Economics that "our oil analysts believe there is now a growing risk that it could (raw) reach $ 100 a barrel".

(For a chart about & # 39; Iran Seaborne Crude Exports & # 39; click tmsnrt.rs / Osb61V)

Washington's sanctions are set to begin on November 4, and analysts say there may not be enough free production capacity to meet demand in the short term, which could potentially require large memory shortages.

"The believers' camp that could reach $ 100 oil continues to expand, and spare capacity concerns continue to grow," said Brian Kessens, managing director of investment firm Tortoise.

The Organization of Petroleum Exporting Countries (OPEC), to which Iran belongs, has difficulty replacing Iranian exports, according to a Reuters poll published Monday.

As oil prices rise and many currencies fall in emerging markets, including India's rupee and Indonesia's rupiah, analysts warn that economic growth may be undermined.

"Admittedly, supply-side concerns continue to drive up oil prices, but there are now clear demand-side warnings that could lower prices," Capital Economics said in a note to customers.

Reporting by Henning Gloystein; Arrangement by Richard Pullin and Joseph Radford

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