Oil hits four-year high as OPEC, allies maintain supply cut

Iran's Oil Minister Bijan Zanganeh

Iranian leaders have already threatened to disrupt oil shipments through the Strait of Hormuz, the world's busiest sea route for crude oil exports. Earlier, oil prices had surged on worries about global supply after USA sanctions on Iran's oil exports take effect November 4. "We will remember. The OPEC monopoly must get prices down now!"

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

“It's going to be significantly less than it was, and probably lower than most people expected when the sanctions were announced - hence the higher prices, ” Luckock said at the APPEC event.

Commodities trackers Trafigura and Mercuria predicted prices could rise towards $100 per barrel by the end of the year or in early 2019.

Brent crude hit its highest since November 2014 at $80.94 per barrel, up $2.14 or 2.7 per cent, before easing to $80.62 by 11:05am EDT (15:05 GMT).

The price rise is notably caused by a recent drop in Iran's supply because of US sanctions. In order to meet global crude demand growth, nearly $11 trillion of investment will be needed across the industry to 2040, the producer group said.

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

Klopp bemoans Liverpool defending after Carabao Cup exit to Chelsea
The rebound was behind Sturridge but he made amends for his miss with a terrific acrobat strike into the net. He only played 34 minutes and only did one noteworthy thing, but what a thing it was.

Oil prices at four-year high after OPEC rebuffs Trump
Saudi Energy Minister Khalid Al Falih also ruled out the need to use spare capacity to increase oil output . Follow Business Insider Australia on Facebook , Twitter , LinkedIn , and Instagram .

Democrats know of second Kavanaugh claim, New Yorker reports
As he builds a case for his innocence, Mr Kavanaugh plans to turn over to the committee calendars from the summer of 1982. Kavanaugh has also agreed to testify at the Senate Judiciary Committee hearing planned for 10 a.m. on Thursday.

However, Saudi Arabia's influential oil minister Khalid al-Falih left the way open to a future production hike, as supplies tighten due to the USA imposing sanctions on Iranian oil from November this year. "We in Saudi Arabia have not seen demand for any additional barrel that we did not produce". The kingdom does expect to pump more in September and increase again in October, he said, without pledging specific volumes.

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".

"Oil demand will be declining in the fourth quarter of this year and the first quarter of next year". A spike to $90 per barrel is likely in the coming months, J.P. Morgan said in its latest market outlook.

Wall Street bankers and hedge funds also saw some caveats to the bullish mood. She says the question of how much Trump's administration can control the Iranian oil market is only one part of the equation.

Worldwide outright crude prices have also maintained a bullish tone in recent weeks with front-month ICE Brent futures consistently testing the $80/b this month amid growing concern over the loss of Iranian barrels and the lack of spare capacity amongst its OPEC partners outside Saudi Arabia. Even if the oil cartel and Russian Federation marginally increase production, that may not make up for the cuts in Iranian crude flowing into the global market, analysts feel.

Brent futures were trading at $80.48 a barrel at noon Monday, up $2.24.

Related news:

Hot News

isis-killer-beheading-video-story-top UK's Labour opposition says it might back new Brexit vote
Sep 27, 2018 - 03:46
A source told BBC that there was consensus in the room opposing the Tories' chaotic approach to the Brexit negotiations. Liberal Democrat Brexit spokesman Tom Brake MP said: "Labour's leaders are aiding and abetting Theresa May on Brexit".

isis-killer-beheading-video-story-top Wenger could not 'win ugly' at Arsenal, says Cech
Sep 27, 2018 - 03:34
But as their belief started to grow, so Brentford were soon hit by the sucker punch of a second Welbeck goal. Pierre-Emerick Aubameyang doubled Arsenal's lead moments later.

isis-killer-beheading-video-story-top Cosby heads to state prison SCI Phoenix to begin serving sentence
Sep 27, 2018 - 03:01
On Wednesday, she was lauded for her inspiring "courage and strength" by prosecutor Kristen Feden. "No one is above the law". Cosby is now in the Pennsylvania Department of Corrections' Phoenix location, in Collegeville, Pa.

isis-killer-beheading-video-story-top Storms fester in the Atlantic - including remnants of Hurricane Florence
Sep 27, 2018 - 02:19
A stretch of I-95 closed in the southeastern part of the state around Lumberton after Florence made landfall on September 14. It'll continue to maintain its strength as it just wanders in the Atlantic over the course of the next several days.

Canada NAFTA fight set to run past latest deadline
Sep 27, 2018 - 02:06
The prime minister said it was a quick and cordial encounter and that people shouldn't read too much into it. The Congress, however, may not approve the revisions if Canada is not to be included in the deal.

isis-killer-beheading-video-story-top Instagram co-founders to leave Facebook amid reported tensions with Mark Zuckerberg
Sep 26, 2018 - 06:34
Since then, Instagram's reach has ballooned and it has widely been seen as one of Facebook's most successful acquisitions. Facebook doesn't break out Instagram's revenue, but it has frequently called out the app in earnings calls.

Trump emphasizes ‘extraordinary progress’ in U.N. Speech
Sep 26, 2018 - 05:32
Before his speech Tuesday, Trump said " Iran has acted very badly" and said it "has to change its tune" before he meets with them. In his own speech, Iranian President Hassan Rouhani slammed the economic sanctions laid on his nation by the US .

isis-killer-beheading-video-story-top Porsche announces it will no longer produce diesel models
Sep 24, 2018 - 19:41
Sale of Porsche's diesel models, on the other hand, have gone down, accounting for just 12 per cent in 2017. The company is keen to point out that they're not "demonizing diesel " but rather responding to the market.

isis-killer-beheading-video-story-top Timberwolves sign Towns to extension
Sep 24, 2018 - 18:57
Butler will be a free agent next summer and the T-Wolves owner is not prepared to lose him for nothing. He took home Rookie of the Year honors that year, and made his first All-Star Game this past season.

isis-killer-beheading-video-story-top Gronk threatened to retire if Pats traded him to Lions
Sep 24, 2018 - 18:32
Lions game will be broadcast on NBC, and it should be possible to watch the game on any streaming service that carries NBC. The tight end, his agent and Bill Belichick all had a meeting at the end of April to try to clear the air.

isis-killer-beheading-video-story-top Bills Pull off Biggest NFL Upset Since 1995 With Win Over Vikings
Sep 24, 2018 - 18:30
And remember, the Bills were without running back LeSean McCoy (ribs), the one true talented offensive player on their roster. The Vikings didn't cross midfield until the fourth quarter and didn't score until there was 3:03 left in the game.

isis-killer-beheading-video-story-top Deputy Attorney General Rod Rosenstein reportedly resigns
Sep 24, 2018 - 18:24
The deputy AG was on his way to the White House - expecting to be fired - Monday morning as Trump was at the UN. Rosenstein resigned "in anticipation of being fired by President Donald Trump ", according to Axios' report .

isis-killer-beheading-video-story-top Donald Trump's trade war will push up prices, predicts Walmart
Sep 23, 2018 - 07:43
That escalation could spur US companies to pre-emptively load up on those goods, too, Deutsche Bank said in a report this week. They say that violates Beijing's market-opening commitments and might erode USA industrial leadership.

isis-killer-beheading-video-story-top Hollande's sauce: Rafale egg on government's face
Sep 23, 2018 - 07:00
Hollande's remark contradicted the Indian government's stand on the Rafale deal . We can't expect anything else from Rahul Gandhi.

isis-killer-beheading-video-story-top Suspect Caught in Logan Circle Stabbing of Wendy Martinez
Sep 23, 2018 - 06:56
Police arrested Anthony Crawford , 23, in connection with the stabbing and have charged him with first-degree murder while armed. Authorities said they received tips from the community after a surveillance image was released to help identify the suspect.