Published: Thu, September 27, 2018
Markets | By Erika Turner

$100 Oil Is A Distinct Possibility - FleetPointFleetPoint

$100 Oil Is A Distinct Possibility - FleetPointFleetPoint

USA light crude CLc1 settled up $1.30, or 1.8 percent, higher at $72.08.

"The market does not have the supply response for a potential disappearance of 2 million barrels a day in the fourth quarter", Mercuria Energy Group Daniel Jaeggi said in a speech at the S&P Global Platts Asia Pacific Petroleum Conference, knows as APPEC.

The so-called 'OPEC+' group, which includes other oil producers, including the world's biggest Russian Federation, as well as Oman and Kazakhstan, met over the weekend to discuss a possible increase in crude output, but the group did not see the need to add new output as the market is well-supplied now.

Trump has repeatedly called for a hike in production by countries other than Iran to reduce oil prices, which have partially recovered since the December 2016 agreement, to trade close to $80 per barrel this month.

Interested in Oil technicals? "By considering the current conditions, he will have to back down on his plan to bring Iran's oil exports to zero".

As new USA sanctions against Iran come into force on November 4, importers would find it harder to buy oil from Tehran.

Benchmark Brent oil reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Organisation of the Petroleum Exporting Countries (OPEC) lower prices.

Now, however, Iran's OPEC governor, Hossein Kazempour Ardebili, said, "If there is a fall not only from Iran, but anybody else, it is the responsibility of OPEC and non-OPEC to balance the market".

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"Were they do so the oil market would be even more uncomfortably tight than we forecast for 2019 as spare capacity is eroded", Mr Bell added.

Trump first blamed OPEC for rising oil prices in April. Output fell below those targets this year, and in June the same countries agreed to boost the oil supply. With upside momentum picking up, we expect to hear more criticism from President Trump, but other than some light profit-taking, his comments are not likely to have much of an effect on the price action.

Iran's OPEC representative Hossein Kazempour Ardebili on Sunday said his country was continuing to meet its OPEC quota share.

Ashley Kelty, oil and gas research analyst at financial services firm Cantor Fitzgerald said oil prices could soon hit $90 per barrel.

The rally in prices is believed to be mainly a result of reduced oil output after fresh sanctions placed on OPEC producer Iran by the US.

"I do not influence prices", Saudi Energy Minister Khalid Al Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost.

"While oil markets are, for the moment, better off for both consumers and producers, we still have to avoid challenges that affect both parties", he said. Once the elections are over, the U.S. administration may be willing to bear a higher oil price.

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