Uncertainty over whether major oil producers would be able to make up for the loss of Iranian exports to USA sanctions that kick in next month were among the factors driving prices higher Wednesday, when WTI topped $76 and Brent climbed above $86.
West Texas Intermediate for November delivery rose 47 cents to $74.80 a barrel at 10:13 a.m. on the New York Mercantile Exchange.
The global oil benchmark, Brent crude, on Wednesday, jumped to $86 per barrel with traders weighing falls in Iranian exports over pending United States' sanctions.
"That oil prices are rising to elevated levels at the same time as emerging market currencies hit record lows will be a flashing signal to OPEC members that demand may be at risk of a sharp correction", said Emirates NBD bank. "Well, probably to some extent he's right, but we are absolutely OK with it at $65 to $75 per barrel to ensure the efficient operation of oil companies and ensure investment", Putin told delegates at the Russia Energy Week forum in Moscow.
"Trump blamed OPEC for rising oil prices in his speech at the United Nations, but the real reason is Trump himself and his sanctions on Iran", IRNA reported on Tuesday quoting Zanganeh as saying. Supply losses from Iran to Venezuela continued to rattle markets, boosting volatility and driving prices higher. The contract was up 2.2 percent this week. An additional 1.7 MMbbl of oil were stowed in tanks at a key US pipeline hub in Oklahoma in the five days to October 2, data provider Genscape Inc. was said to have reported.
"Trump thought he could shrink our country's oil revenues by imposing sanctions on Iran's oil and cutting its exports, but the rise in oil prices did not let that happen", Mohammad Baqer Nobakht, the head of Iran's Planning and Budget Organization, said Thursday.The global benchmark crude traded at a $9.75 premium to WTI for the same month. Currently, most OPEC producers are pumping at, or close to, full capacity, with only Saudi Arabia able to increase output significantly. West Texas Intermediate gained almost $2 a barrel to trade above $76. Recent tanker data had shown a sharp fall in exports to India, but the reappearance of these tankers may imply that flows to India may not be as low as preliminary data showed.
The Energy Information Administration reported Wednesday that domestic crude supplies surged by 8 million barrels for the week ended September 28.
Official weekly government data is due from the Energy Information Administration (EIA) on Wednesday.
-With assistance from Stephen Stapczynski.
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