$100 Oil Is A Distinct Possibility - FleetPointFleetPoint

$100 Oil Is A Distinct Possibility - FleetPointFleetPoint

$100 Oil Is A Distinct Possibility - FleetPointFleetPoint

The OPEC and non-OPEC, including the world´s biggest producer Russian Federation, are meeting on September 23 to discuss how to allocate supply increases within their quota framework.

The tightening US market came ahead of sanctions that Washington plans to implement against Iran's petroleum exports from early November. "By considering the current conditions, he will have to back down on his plan to bring Iran's oil exports to zero".

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.

The oil price is on course for its fifth consecutive quarterly increase, the longest stretch of gains since early 2007, when a six-quarter run led to a record high of $147.50 a barrel.

Khaled al-Falih was speaking at a meeting in Algiers of about twenty member countries and non-Opec member signatories by the end of 2016 an agreement by which they pledged to limit their offers to raise the price of crude oil.

US Secretary of State Mike Pompeo has said Washington may grant waivers for major importers of Iranian crude but it still expects them to ultimately comply with the sanctions.

This came during the 10th meeting of the Joint Ministerial Committee to follow up the agreement to reduce the oil production of members of OPEC and its partners from outside the organization, which concluded on Sunday in Algeria.

Oil prices on Tuesday were within reach of four-year highs hit in the previous session, as looming US sanctions against Iran and unwillingness by the Organization of the Petroleum Exporting Countries (OPEC) to raise output supported the market, Reuters reports.

The higher oil prices could cause problems for Trump in the lead up to the midterm congressional elections in November.

Over the weekend, OPEC leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out any immediate extra increase in output, effectively snubbing pressure from Trump to lower the prices.

WATCH: What's next for Iran oil? Notably, Brent crude just made a new high for the year, while WTI has jumped above its short-term high of $71.38.

Iran told OPEC its production had been steady in August at 3.8 million bpd. 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.

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". Reuters reported on September 5 that Saudi Arabia wants oil to stay between $70 and $80 a barrel to keep a balance between maximizing revenue and keeping a lid on prices until USA congressional elections.

As a practical matter, Saudi Arabia, the United Arab Emirates and Kuwait are the only OPEC members that have significant volumes of spare capacity and could raise output.

Related news