Brent oil prices rose on Friday and were set for a sixth straight
week of gains, boosted by strong demand, looming sanctions on Iran,
plummeting Venezuelan production and Nigerian disruptions.
week of gains, boosted by strong demand, looming sanctions on Iran,
plummeting Venezuelan production and Nigerian disruptions.
Brent
crude futures rose by 22 cents to $79.52 a barrel at 1337 GMT. The
benchmark on Thursday broke through $80 for the first time since
November 2014.
crude futures rose by 22 cents to $79.52 a barrel at 1337 GMT. The
benchmark on Thursday broke through $80 for the first time since
November 2014.
U.S. West Texas Intermediate crude futures were unchanged at $71.49 a barrel, and set for a third straight week of increase.
British
bank Barclays said it expected average prices of $70 per barrel for
Brent this year and $65 a barrel for 2019, up from estimates of $63 and
$60 previously.
bank Barclays said it expected average prices of $70 per barrel for
Brent this year and $65 a barrel for 2019, up from estimates of $63 and
$60 previously.
“Since last month, Venezuela’s production
decline, Trump’s Iran sanctions decision, a new disruption in Nigeria,
and anecdotal evidence from a new round of producer earnings require a
price forecast revision,” the bank said.
decline, Trump’s Iran sanctions decision, a new disruption in Nigeria,
and anecdotal evidence from a new round of producer earnings require a
price forecast revision,” the bank said.
Rising prices have already raised the alarm among big oil-consuming countries.
OPEC
kingpin Saudi Arabia said on Thursday it would make sure the world is
adequately supplied with oil just as major consumer India expressed
frustration with rising prices.
kingpin Saudi Arabia said on Thursday it would make sure the world is
adequately supplied with oil just as major consumer India expressed
frustration with rising prices.
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Saudi Energy Minister Khalid
al-Falih called India’s Petroleum Minister Dharmendra Pradhan to assure
him that supporting global economic growth was “one of the kingdom’s key
goals”, the Saudi Energy Ministry said.
al-Falih called India’s Petroleum Minister Dharmendra Pradhan to assure
him that supporting global economic growth was “one of the kingdom’s key
goals”, the Saudi Energy Ministry said.
Crude prices have
received broad support from voluntary supply cuts led by the
Organization of the Petroleum Exporting Countries.
received broad support from voluntary supply cuts led by the
Organization of the Petroleum Exporting Countries.
The
International Energy Agency said oil inventories in the developed world
had already dipped below the five-year average, a measure targeted by
OPEC and its allies.
International Energy Agency said oil inventories in the developed world
had already dipped below the five-year average, a measure targeted by
OPEC and its allies.
Beyond OPEC’s cuts, strong demand, falling
output from Venezuela and a U.S. announcement this month that it would
renew sanctions against OPEC member Iran have helped push up Brent by 20
percent since the start of the year.
output from Venezuela and a U.S. announcement this month that it would
renew sanctions against OPEC member Iran have helped push up Brent by 20
percent since the start of the year.
U.S. investment bank
Jefferies said sanctions against Iran could remove more than 1 million
barrels per day (bpd) from the market.
Jefferies said sanctions against Iran could remove more than 1 million
barrels per day (bpd) from the market.
Barclays said output from
Venezuela could fall below 1 million bpd. The country, also an OPEC
member, produced around 1.5 million bpd in April.
Venezuela could fall below 1 million bpd. The country, also an OPEC
member, produced around 1.5 million bpd in April.
In
Nigeria, Shell declared force majeure on Thursday on loadings of Bonny
Light crude. Exports of the grade were expected to run at nearly 200,000
bpd in June. Nigeria’s Forcados stream was also experiencing delays due
to a pipeline leak.
Nigeria, Shell declared force majeure on Thursday on loadings of Bonny
Light crude. Exports of the grade were expected to run at nearly 200,000
bpd in June. Nigeria’s Forcados stream was also experiencing delays due
to a pipeline leak.
BP, however, sees the rally cooling off. The
oil major’s Chief Executive Bob Dudley told Reuters he saw oil falling
to between $50 and $65 a barrel due to surging shale output and OPEC’s
capacity to boost production. (Reuters)
oil major’s Chief Executive Bob Dudley told Reuters he saw oil falling
to between $50 and $65 a barrel due to surging shale output and OPEC’s
capacity to boost production. (Reuters)
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