Oil rises to 2014 highs on Iran sanctions, Nafta deal

Oil rises to 2014 highs on Iran sanctions, Nafta deal

USA oil prices gained 2.8 percent Monday on breakthrough of trade talks among the United States, Canada and Mexico and concerns over tight oil supply due to sanctions on Iran.

Worldwide benchmark Brent crude traded at around $83.01 on Monday, up around 0.34 percent, while US West Texas Intermediate (WTI) stood at around $73.42, more than 0.2 percent higher.

Worldwide oil benchmark, Brent crude, extended its gains on Monday, rising to its highest level of $84 per barrel since November 2014.

Futures were little changed in NY after closing Monday at the highest since November 2014.

A Reuters survey of OPEC production found Iranian output in September fell by 100,000 barrels per day, while production from the group as a whole rose by 90,000 bpd from August.

US President Donald Trump is calling on the worldwide community to suspend imports of crude from Iran by November, driving up prices globally.

ANZ bank said on Monday that "the market is eyeing oil prices at 100 dollars per barrel". "If he wants the price of oil not to go up and the market not to get destabilized, he should stop unwarranted and disruptive interference in the Middle East and not be an obstacle to the production and export of Iran's oil", Tehran's oil minister, Bijan Zanganeh, said this week.

Oil in London extended gains after the longest quarterly rally in a decade as a slowdown in American drilling added to supply risks while the U.S. and Saudi Arabia discussed market stability. China's Sinopec said it halved loadings of Iranian oil in September.

Trump's been increasing the pressure on OPEC, saying it's pushing oil prices too high. The Organization of Petroleum Exporting Countries and its allies also showed little enthusiasm for boosting output despite President Donald Trump's demand for lower prices.

United States sanctions on Iran's energy industry, which come into force on November 4, are created to cut crude exports from the third-biggest producer in OPEC.

"Until sizable supply is offered up by OPEC, ultimately traders will continue to push the envelope even more", said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore. A survey by The Wall Street Journal indicates analysts, on average, are expecting that US crude oil inventories rose by 1.3 million barrels last week.

Related Articles