Opec predicts massive rise in oil production over next five years

Crude prices are spiking

Crude prices are spiking

Brent could rise to US$100 for the first time since 2014 as the market braces for the loss of Iranian supplies due to USA sanctions, according to Mercuria Energy Group Ltd. and Trafigura Group.

Opec and its allies are just halfway toward their June pledge to pump an extra 1 million barrels a day of crude to fill the gap created by an economic collapse in Venezuela and renewed United States sanctions on Iran.

Iranian oil minister Bijan Zanganeh said on Sunday that Mr Trump's tweet "was the biggest insult to Washington's allies in the Middle East".

The outages from Iran are worse than most analysts expected as buyers remain wary of penalties from sanctions due to take effect from November.

OPEC and non-OPEC, including Russian Federation, gathered in Algiers on Sunday for a meeting that ended with no recommendations for any additional supply boost to counter falling supply from Iran.

"If demand is 10.9 million barrels a day, you can certainly take it to the bank that we will meet it", he said.

At 0505 GMT, November WTI Crude Oil futures are trading $72.24, up $0.16 or +0.22% and December Brent Crude Oil is at $80.76, up $0.23 or +0.29%.

A steady rise in USA oil output will gather pace in the next five years, OPEC said on Sunday, predicting that demand for the producer group's crude will decline despite a growing appetite for energy fed by global economic expansion.

I-95 reopened more than a week after Hurricane Florence
The depression had been approaching the Lesser Antilles but thanks to hostile winds only a cyclonic wisp of clouds remained. Some strengthening is forecast through Sunday, with little change in intensity forecast on Monday and Tuesday.

In a speech before the United Nations, Trump reiterated calls on the Organization of the Petroleum Exporting Countries to pump more oil and stop raising prices.

World oil production will soar to new records over the next five years, as a dramatic expansion in demand from airlines offsets the arrival of electric cars, according to a report from Opec. Bank of America Merrill Lynch joined JPMorgan Chase & Co.in anticipating higher prices down the line - the former expects crude to reach $95 a barrel in the first half of next year. Earlier this month, the International Energy Agency warned there was a risk of oil prices spiralling higher in the coming months, posing a dilemma for the chancellor, Philip Hammond, as he looks to raise fuel duty.

"We will consider waivers where appropriate but it is our expectation that the purchases of Iranian crude oil will go to zero from every country or sanctions will be imposed", Pompeo said earlier this month.

USA officials, including President Donald Trump, are trying to assure consumers and investors that enough supply will remain in the oil market while requesting producers raise their output.

To reflect rising US oil exports, CME Group Inc said on Monday it will launch a WTI Houston crude futures contract in the fourth quarter.

"It is clear that the impact of forthcoming U.S. sanctions on Iranian oil exports. will be deeper than many had expected", said Peter Kiernan, lead energy analyst at the Economist Intelligence Unit in Singapore.

Algiers meeting is expected to extend the 2016 agreement, which was reached in Algiers to cut oil output and will expire at the end of 2018, to an additional period to maintain prices at the current level.

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