Nigerian cargoes struggle for buyers as oil prices hit $84

The potential supply shortage is a a reversal of the glut seen in the oil market between 2015 to 2017

The potential supply shortage is a a reversal of the glut seen in the oil market between 2015 to 2017

Brent crude oil prices hit their highest level since November 2014 on Monday ahead of USA sanctions against Iran that kick in next month.

Brent crude LCOc1 futures settled at $82.72 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures settled at $73.25 a barrel. Total volume traded was about 18 percent below the 100-day average.

The 15-member Organisation of the Petroleum Exporting Countries pumped a 2018 high of 32.85 million barrels per day in September, according to the Reuters monthly survey, up by 90,000 bpd from August's revised level.

"We defend many of these nations for nothing, and then they take advantage of us by giving us high oil prices". And, as concerns over supply remain elevated, a growing pool of analysts are anticipating the price of the valuable commodity could hit $100 per barrel.

Crude prices have been mainly lifted by looming USA sanctions that target Iran's oil industry, which at its most recent highest level this year provided nearly 3 percent of the world's almost 100 million barrels of daily consumption.




"The market continues to move higher on fears that the loss of Iranian exports is not going to be made up", said Gene McGillian, director of market research at Tradition Energy, in Stamford Connecticut.

Almost all hedge fund managers expect oil prices to rise rather than fall in the short to medium term, according to exchange data (tmsnrt.rs/2OyHccI). The Organization of Petroleum Exporting Countries and its allies also showed little enthusiasm for boosting output despite President Donald Trump's demand for lower prices.

The Schork Report Founder Stephen Schork discusses why low oil prices aren't necessarily good for the economy and how high prices are a reflection of a strong economy.

The escalating trade war between the USA and China dampens expectations on demand growth, while sanctions on Iran put pressure on the supply side. In November, the global benchmark has seen a fall of about 2.8%, with WTI down 3.2%. With sanctions due to resume on November 4, the sharp drop-off in supply from the Persian Gulf state has helped buoy crude oil prices.

The recent increase in oil prices has prompted talk that crude could reach $100 per barrel for the first time since prices slumped in mid-2014, when Brent peaked at $115 per barrel.

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