Oil prices edged up on Tuesday, holding near a four-year high reached the previous day as markets adjust to the prospect of tighter supply once the USA sanctions against Iran kick in next month.
US and global benchmark crude futures were poised Friday to post a third straight weekly gain but according to Dow Jones Market Data, October is the worst month for Brent crude, based on average monthly performance since 1990, while November stands as the worst for West Texas Intermediate.
Case in point: Russian Federation, whose deputy energy minister, Pavel Sorokin, said on Monday that production of hard-to-recover oil is expected to rise by 10 percent to 860,000 bpd this year, and that "Many of our companies have advanced in this direction".
The oil price is little changed at close to $85 per barrel, Tuesday.
This would be the first highest trade deal hitting above the USD$85 per barrel threshold since November of 2014.
Brent for December settlement increased as much as 54 cents to $83.27 a barrel on the ICE Futures Europe exchange and was at $83.17 at 12:22 p.m.in Singapore.
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The US President Donald Trump reviewed on Saturday in a phone call with Saudi King Salman bin Abdulaziz Al Saud the oil supply for stability of the market, Saudi Press Agency reported. President Donald Trump can't afford that before the upcoming United States midterm elections, says Andy Lipow, president of Lipow Oil Associates. The bullish breakout can lead oil prices towards $74.30. The global benchmark crude traded at a $9.82 premium to West Texas Intermediate.
Oil traded near the highest level in nearly four years as investors grapple with doubts over OPEC's ability to replace falling exports from Iran. While top traders predict oil may reach $100 a barrel, concerns remain over waning demand as the U.S.
Global crude oil is heading towards to $90 per barrel, the highest since 2014 as a result of looming sanctions against Iran by the US.
Brent oil price climbed to a four-year high ahead of USA sanctions against major producer Iran.
"Nobody wants to get caught short, full in the knowledge that more Iranian barrels are poised to be removed from the market", Stephen Brennock, oil analyst at PVM Oil Associates, said in a research note published on Monday.
Crude prices have roughly tripled from lows hit in January 2016 after the Organization of the Petroleum Exporting Countries and allies led by Russian Federation cut output.