• News
  • Money

Brent Crude Hits $80 Amid Concerns Over Iran Supply

Brent Crude Hits $80 Amid Concerns Over Iran Supply

But not everyone is bullish on the oil market.

Non-OPEC supply capex down 42 percent from 2014.

The implications for oil prices are massive... Brent crude futures were at $79.40 per barrel at 0617 GMT, up 0.14 percent from their last close after marking their highest in more than 3-1/2 years. Brent crude is now above $78.10. Further, any response will reduce spare capacity in an increasingly tighter market.

Venezuela and Nigeria are among the cartel members beset by political turmoil, while Iran may be hit with harsh United States sactions that could effect the oil industry.

OPEC is working to drain a surplus from the market through coordinated production cuts. South Sudan oil production has fallen from 500,000 to 130,000 barrels per day. Backwardation seems one of the most reliable signs of tightness in the market. Crude oil inventories (-2.2m vs. -1.0m expected) were lower than expectations.

Geopolitical issues are drawing the market focus away from more fundamental issues like supply and demand metrics, the International Energy Agency said.

The removal of energy subsidies in big consumer economies in recent years, such as those in India, could mean rising prices have a bigger impact on demand, the IEA said. That's old news. In fact, oil stockpiles started to decline about one year ago, according to the U.S. Energy Information Administration.

On Wednesday, the EIA reported that USA crude inventories fell 1.4 million barrels last week, while domestic production rose to 10.7 million barrels a day.

US West Texas Intermediate (WTI) crude futures were at $71.68 a barrel, up 19 cents, or 0.3%, from their last settlement.

The CEO of French oil giant Total said on Thursday he "wouldn't be surprised to see US$100 per barrel" in the coming months. Capital expenditures in non-OPEC grew by only two percent in 2017, and are still 42 percent below 2014. Probably, the investors are pricing in the sentiments.

It has taken 500 days and the sacrifice of nearly a billion barrels in lost oil output for the global crude market to eradicate a deep supply surplus, but oil prices have now hit OPEC heavyweight Saudi Arabia's desired level of $80 a barrel.

In April, Chinese crude oil imports set a new record-at 9.6 million bpd they beat the previous daily record of 9.57 million bpd from January this year.

Is $100-$3.60 per gallon gasoline in the US -or higher possible? In this case, USA drillers are already mobilizing to supply the markets with more crude.

On balance, the report is tending more to the negative side. Oil prices are sure to keep climbing. There's no guarantee that the Saudis will step in to increase production and make up for Iran's lost barrels-after all, the Kingdom has not expressed concerns over the declines in Venezuela. Other OPEC officials, meanwhile, have expressed complacency. The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE), and Merey (Venezuela).

A surge to triple digits is not guaranteed, of course.

India's 2018 Iran oil purchases fell because of lower intake by state refiners in the March quarter.

Leave Your Comment

Leave Your Comment


Latest News

  • Wenger: Arteta has qualities for Arsenal job

    Wenger: Arteta has qualities for Arsenal job

    Arteta made over 100 appearances for Arsenal over the course of five seasons, joining in 2011 and becoming club captain in 2014. Having spent 22 years at the Gunners helm, the Frenchman has suffered plenty of recruitment near misses in his time.
    Sherpa Kami Rita Sets Record with 22nd Successful Climb of Mount Everest

    Sherpa Kami Rita Sets Record with 22nd Successful Climb of Mount Everest

    On Wednesday, he created a new record by climbing Everest for the record 22nd time, The Kathmandu Post reports. More than 340 foreign climbers along with their local guides are attempting to climb Everest this month.
    Lachlan Murdoch set to become chairman and CEO of 'New Fox'

    Lachlan Murdoch set to become chairman and CEO of 'New Fox'

    He's expected to move on after the deal with Disney is completed, pursuing his interests in areas such as technology investments. The executive will assume both the CEO and chairman jobs at the company, which is being referred to as New Fox.
  • Martial and Lacazette are major absentees in France's World Cup squad

    Martial and Lacazette are major absentees in France's World Cup squad

    I put the group on top of everything and from there, I make choices that in my opinion are for the good of the France team. France, runner-up at the European Championship two years ago, opens its World Cup campaign against Australia on June 16.
    US Officer Shoots Student Who Opens Fire at School

    US Officer Shoots Student Who Opens Fire at School

    An armed former student was shot at Dixon High School on Wednesday after exchanging gunfire with an officer, city officials said. Lockdown has been lifted at the other schools in the city about 80 miles (130 kilometers) west of Chicago.
    Yanny or Laurel: How To Hear Both Of The Sounds

    Yanny or Laurel: How To Hear Both Of The Sounds

    Although that clip clearly says Laurel , apparently there are people out there who hear Yanny , so that's where we are right now. The audio clip bends the question to what is heard, rather than what is seen, and people are fired up about it.
  • Pruitt grilled over reported use of sirens to beat DC traffic

    Pruitt grilled over reported use of sirens to beat DC traffic

    Udall on whether or not the administrator explicitly requested the use of lights and sirens on agency vehicles while travelling. Udall issued some of the harshest criticism of Pruitt, calling his leadership at the EPA "a betrayal of the American people".
    Scientists have found the growing black hole

    Scientists have found the growing black hole

    The supermassive black hole is so powerful, that if it were at the centre of the Milky Way, all life on earth would be impossible. Luckily, this black hole is too old and too far away to affect Earth , but that doesn't make its discovery any less remarkable.
    HBO, Sky team on Amy Berg's

    HBO, Sky team on Amy Berg's "The Case Against Adnan Syed"

    The four-hour doc, directed by the Oscar-nominated Amy Berg , is set to debut on HBO in the U.S. and on Sky Atlantic in the UK. The Baltimore Sun reported this week that Syed's prosecutors had asked the court to reverse the retrial ruling.
  • Regional Champs; KU advances to NCAA Championship

    Regional Champs; KU advances to NCAA Championship

    Phillips said he was pleased with his putting for the day and deemed it his best tournament of the spring, if not in his career. Sophomore Cooper Dossey was in the top spot for Baylor, finishing seventh overall at seven under par and finishing with a 209.
    TI posts bail after being arrested trying to enter his gated community

    TI posts bail after being arrested trying to enter his gated community

    T.I. was arrested after a dispute with a security guard in his gated housing community in Georgia on Wednesday morning (May 16). He spent 11 months in federal prison the following year for a probation violation after an arrest on drug charges.
    Sixers' Ben Simmons, Joel Embiid are finalists for National Basketball Association  awards

    Sixers' Ben Simmons, Joel Embiid are finalists for National Basketball Association awards

    Harden, who led the league in scoring, has twice been a runner-up for the award, including past year when Russell Westbrook won. Simmons, Utah shooting guard Donovan Mitchell and Boston small forward Jayson Tatum are the rookie-of-the-year finalists.
  • Amazon Alexa Coders Can Now Use 8 Different Voices in Their Skills

    Amazon Alexa Coders Can Now Use 8 Different Voices in Their Skills

    This new capability can help you enrich your skill's experience, making it more engaging for customers. "It's as easy as that". With voice becoming a more popular input, businesses can use Polly to differentiate their offerings on Alexa.
    Another deadly attack in indonesia

    Another deadly attack in indonesia

    Australian news website news.com.au reports that more than one reporter, attending an unrelated news conference, were hurt. The bombing followed separate attacks on three churches, also carried out by one family, in the same city.
    Nassar sex abuse victims, US university reach $500m settlement

    Nassar sex abuse victims, US university reach $500m settlement

    Years after physical abuse, the emotional scars are still there, and the half-billion dollar settlement aims to help the healing. Beneath the settlement, $425 million might be paid to present claimants and $75 million might be put aside for any future claims.
  • Battlefield V Is This Year's Battlefield Game

    Battlefield V Is This Year's Battlefield Game

    The title " Battlefield V " was revealed by multiple sources, all claiming that the next game is set during the Second World War . PDT, viewers can tune in through the official Battlefield YouTube channel , Twitch , Mixer .com and the official website .
    Triad schools close for teacher rally

    Triad schools close for teacher rally

    Lowe said solutions need to include "shifting some resources toward the schools and being much better stewards of taxpayer money". The throng migrated nine blocks to the North Carolina General Assembly as a helicopter and a photo drone hovered overhead.
    National Basketball Association  won't discipline Smith for shove

    National Basketball Association won't discipline Smith for shove

    The Celtics' series-clinching victory marked the end of James' first stint with the Cavs. "His shoulder hit me square in the jaw". Smart performed as a tone-setter, finishing with an all-around line of 11 points, nine assists, five rebounds and four steals.

Breaking News



Recommended

Thomas Tuchel named new coach at Paris Saint-Germain

However, Tuchel - a modest player whose career was cut short by a knee injury - is not yet proven as a coach at the highest level. THIAGO SILVA, PSG's Brazilian defender who feels that the club have made a right choice in appointing Thomas Tuchel .

Alabama announces home-and-home football series with Texas

While those games can be fun, many college football fans clamor for the return of more interesting home-and-home series. The 2019 season will be no different, as Alabama is set to travel to Orlando to play Louisville on Saturday, Sept. 1.

Samsung beefs up the Galaxy S9's color pallet with red and gold

Now that they have worked out the reason behind the bugs, T-Mobile is ready to release the update once more. Well, we'll find out in a few months if we are indeed getting the Galaxy Note 9 a month earlier.

Trump Financial Disclosures Show Cohen Hush Money Payment

Summary: President Donald Trump declared a debt to Michael Cohen on his recently submitted financial disclosure form . Trump had previously disputed whether he was aware of the payment by Cohen and whether he reimbursed his attorney.

Marcus Smart calls out JR Smith for 'dirty' play

Smith shoved Al Horford in the fourth quarter of the Boston Celtics' Game 2 victory over the Cleveland Cavaliers . Smith received a "flagrant foul - type 1" for his boneheaded foul on Horford with 3:49 on the clock.

Transfer window: When can Chelsea start signing players this summer?

In fact, deals can be agreed before May 17 , however, the paperwork cannot be processed until the window has officially opened. In France , the transfer window opens on June 9, while in Italy and Germany business can be completed from July 1. 'Yes.

YouTube Music rumored to launch on Tuesday along with rebranded YouTube Premium

Originally launched back in 2015, YouTube Red was a hit for its ad-free experience and original content. If you are a YouTube Red member, your service will automatically receive access at your current price.

Arsenal hold talks with in-demand £40 million midfielder

Arsenal's director of football, Raul Sanllehi, is reportedly leading the negotiations for the Ivory Coast global . Juventus boss Massimiliano Allegri also appears to be in the running for the job at the North London club.

HOOPS HOAX: Man, 25, allegedly posed as teen to play basketball

Richardson ISD says Sidney Bouvier Gilstrap-Portley attended one day of classes at Richardson High School last fall. Gilstrap-Portley may have scammed his way in with just immunization and physical records, a district rep says.

Ramadan fasting commences tomorrow, Sultan declares

The Islamic holy month of Ramadan or Ramzan will begin on Thursday in India after the moon was sighted in New Delhi and Lucknow. The main objective of keeping fast is to get closer to the Almighty Allah.