Brent oil jumps to four-year high near $81

Brent oil jumps to four-year high near $81

Brent oil jumps to four-year high near $81

OPEC also decided on Sunday to adjust the dates of its next meeting to December 6-7 from the earlier-agreed December 3.

But he said producers would reduce "supply if there is ever. a demand shock to the market".

"The impending sanction of Iranian output not only removes around 1 million barrels per day (bpd), but the potential supply response of a further 2 million bpd", he said.

New inventory data from the US Energy Information Administration and Department, which will be released later this week, will be crucial in deciding the price curve.

"Given the numbers we saw today, that [an output increase in 2019] is highly unlikely unless we have surprises on the supply and demand", Falih said, Reuters reported.

Oil demand is forecast to increase by 14.5 million barrels a day to a total of 111.7 million barrels in 2040, driven by an expanding middle class and economic growth in developing countries.

Iran's production "is going to be significantly less than it was, and probably lower than most people expected when the sanctions were announced", Luckock said at the APPEC event.

With prices recently hovering around $80 a barrel for Brent crude, Trump has used Twitter and other means to lean on OPEC to increase oil supplies.

Commodity traders Trafigura and Mercuria said Brent could rise to $90 per barrel by Christmas and pass $100 in early 2019, as markets tighten once USA sanctions against Iran are fully implemented from November. American sanctions on Venezuela and the crisis in the country has also hit production.

American tight oil production will rise to 16 MMbpd by the late 2020s, the report said, making up nearly 25% of total non-OPEC supply by then.

Hossein Kazempour Ardebili, Iran's ambassador to the Organization of the Petroleum Exporting Countries (OPEC), said none of the current major producers including Saudi Arabia and Russian Federation had the technical capability to fill the gap that would be created as a result of a potential halt in Iran's oil exports.

Major oil companies took some solace from OPEC's assurances.

The committee said in a statement that it was satisfied "regarding the current oil market outlook, with an overall healthy balance between supply and demand". "It is conceivable to see oil north of $100 a barrel", Jaeggi said.

The market has looked to softening demand from trade tensions between the United States and China to offset the production cuts from Iran.

Wall Street bankers and hedge funds also saw some caveats to the bullish mood.

Fuel prices in India do not show any sign of abatement, with petrol in Mumbai breaching 90 on Monday and the markets logging in a Rs 5 per litre rise in the one-month period, the steepest since the daily pricing began in June past year.

Meanwhile, the risk of escalating trade tensions between the USA and China could weigh on oil prices, with no improvement in relations between the two rivals in sight.

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