Price of oil could reach $100/barrel by late 2018 or early 2019
- Author: Eleanor Harrison Sep 27, 2018,
Sep 27, 2018, 1:14
If U.S. President Donald Trump wants the price of oil to stop going up, he should stop interfering in the Middle East, Iranian oil minister Bijan Zanganeh said on Wednesday, according to the Iranian Students' News Agency (ISNA).
Speaking at the Asia Pacific Petroleum Conference (APPEC) in Singapore, the president of commodity merchant Mercuria Energy Trading, Daniel Jaeggi, said that almost two million barrels per day of crude could be removed from the market by the fourth quarter of 2018 due to these sanctions.
In addition to ripping U.S. foes such as Iran and Venezuela, President Donald Trump took direct aim at America's Gulf allies during his speech at the UN General Assembly meeting today. "We defend many of these nations for nothing and then they take advantage of us by giving us high oil prices", stressing, "it 's not good". The news was bearish for oil, but some analysts expressed skepticism about the efficiency of the mechanism on the grounds that the US could simply expand the scope of the sanctions to include barter deals between the European Union and Iran.
Zanganeh said such a plan isn't possible long-term, though Washington seems determined to cut Iran's crude exports, "even if for just a month".
The so-called "OPEC+" group, which includes producers such as Saudi Arabia and Russian Federation, met over the weekend but did not see the need to add new output.
The bank's analysts said in a note Tuesday that "another supply catalyst beyond Iran would likely be needed for prices to meaningfully break to the upside".
This could result in the price of oil rising to $100 per barrel. With oil prices hitting a four-year high of $82 per barrel, the U.S. leader slammed the OPEC oil cartel after Saudi Arabia and Russian Federation rejected calls to increase production amid looming United States sanctions on Iran's oil exports.
"After the weekend's meeting, the voices of those who foresee 100 dollars a barrel and compare the current backdrop to the 2007/2008 bull run are getting louder", said PVM Oil Associates strategist Tamas Varga.
At the same time, the demand worldwide is reaching 100 million barrels per day for the first time in history.
"We are not going to put up with it, these terrible prices, much longer".
Trump blames that policy for pushing oil futures into a range between about $70 and $80 per barrel and keeping the national average gasoline price anchored near $3 a gallon.