Connect The Dots: Trump Praises India As It Cuts Iran Oil Import

Cornelia Mascio
Settembre 26, 2018

Brent for November traded at $82.03 a barrel, up 16c, on the ICE Futures Europe exchange at 15:59 in Tokyo, after settling Tuesday at the highest level in nearly four years.

OPEC members do not have the capacity to increase production, Zanganeh said. Earlier, oil prices had surged on worries about global supply after U.S. sanctions on Iran's oil exports take effect Nov 4.

Oil prices rose Tuesday on global supply concerns following US sanctions on Iran's oil exports, with benchmark Brent surging to a four-year high, then retraced gains to settle just slightly higher after US President Donald Trump called again on Opec to boost crude output.

Oil prices jumped more than two per cent to a four-year high on Monday after Saudi Arabia and Russian Federation ruled out any immediate increase in production.

US crude inventories were forecast to have declined for a sixth straight week, according to analysts polled ahead of reports from the American Petroleum Institute (API), an industry group, on Tuesday, and from the US Department of Energy on Wednesday.

The United States will apply sanctions to halt oil exports from Iran, the third-largest producer in OPEC, starting on November 4. By New Year, Mr. Luckok said, as markets tighten, the price could go as high as $100. USA crude futures rose 20 cents to US$72.28 a barrel, close to the highest since mid-July.

The so-called 'OPEC+' group, which includes the world's biggest producer Russian Federation, met over the weekend but did not see the need to add new output as the market is well-supplied now. "We want them to start lowering prices and they must contribute substantially to military protection from now on", he said. The pending loss of Iranian supply has been a major factor in the recent surge in crude prices.

Speaking at the Asia Pacific Petroleum Conference (APPEC) in Singapore, the president of commodity merchant Mercuria Energy Trading, Daniel Jaeggi, said that almost two million barrels per day of crude could be removed from the market by the fourth quarter of 2018 due to these sanctions.

"After the weekend's meeting, the voices of those who foresee 100 dollars a barrel and compare the current backdrop to the 2007/2008 bull run are getting louder", said PVM Oil Associates strategist Tamas Varga.

Such a rise in oil prices would make it the first time since the summer of 2014 that oil would return to the $100-a-barrel price level.

The price of oil has been steadily going up since the early months of 2017.

The sanctions are expected to have an immediate impact on exports from Opec's third largest producer.

Release of U.S. crude data will be watched closely by oil investors going forward.

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