WTI futures, slumped last week by nearly 2 million barrels to their lowest since December.

Tensions spiked between Iran and the West after Iranian commandos seized a British-flagged oil tanker in the Gulf.

Brent crude futures for September fell 21 cents to USD 66.51 a barrel.

Oil companies in the Gulf of Mexico had cut more than 1 million barrels per day (bpd) of output.

Selected partners will have rights over part of incremental output on top of baseline production from the blocks.

Oil prices have been squeezing higher on escalating tensions in the Middle East.

West Texas Intermediate crude was up 70 cents, or 1.2 per cent, at USD 58.13 a barrel.

Thursday’s tanker attacks in the Gulf of Oman exacerbated the antagonistic fallout from similar blasts in May that crippled four vessels.

The country's dependence on imported crude oil to meet its needs has risen to 83.7 per cent in 2018-19.