Petroleum costs increased dramatically on Friday, in the middle of speculation about scarcity in supply post application of sanctions on Iranian oil from early November.
The U.S. Energy Secretary Rick Perry’s remarks on Wednesday that the U.S. will not open up its strategic petroleum reserves or put a cap on prices, aided oil’s surge.
With the OPEC members and leading non-OPEC oil manufacturers stating they are in no rush to increase output to make up for the loss of supply from Iran, worries about supply have actually increased.
The conference of the Organization of the Petroleum Exporting Countries and non-OPEC members including Russia, last weekend, ended without any formal recommendation for any extra supply increase.
Crude oil futures for November delivery wound up $1.13, or 1.6%, at $73.25 a barrel, the highest settlement rate in two months.
On Thursday, crude oil futures ended up $0.55, or 0.8%, at $72.12 a barrel. For the week, crude oil futures got 3.5%
The Energy Details Administration’s report on Wednesday showed an unanticipated jump in U.S. crude stockpiles recently. The data revealed unrefined stockpiles to have actually increased by almost 1.9 million barrels in the week, as versus an expected drop of over 2 million barrels. The report also said U.S. crude production hit a record 11.1 million bpd in the week.
Inning accordance with reports, crude oil shipments from Iran may have dropped to about 1.5 million barrels a day this month. When U.S. sanctions take result on November 4, it is expected that oil exports from Iran will drop further. Iran exported about 2.3 million barrel a day in June.
The material has been offered by InstaForex Company – www.instaforex.com