Petroleum futures increased to their highest settlement cost in nearly 4 years on Monday, lifted by news about the U.S., Canada and Mexico reaching a trade agreement and on decreasing oil exports from Iran.
Reports about supply disturbances in Venezuela too aided crude’s uptick.
The U.S. sanctions on Iran will start next month. With OPEC members not keen on increasing output, it remains to be seen how the oil producing countries will prepare to repair the need – supply gap.
After a meeting on September 23, OPEC members and top non-OPEC oil manufacturers stated they were in no rush to increase output.
According to reports, the U.S. President Donald Trump called Saudi Arabia’s King Salman on Saturday to talk about methods to preserve sufficient supply post application of sanctions versus Iranian oil.
Last week, the U.S. Energy Secretary Rick Perry apparently said that the U.S. will not open up its strategic petroleum reserves to balance out the decline in production post sanctions on Iranian oil.
Petroleum futures for November wound up $2,05, or 2.8%, at $75.30 a barrel, the highest settlement given that November 2014.
On Friday, crude oil futures settled up $1.13, or 1.6%, at $73.25 a barrel.
Last week EIA’s report showed an unexpected jump in U.S. unrefined stockpiles in the week ended September 21. The data revealed crude stockpiles to have risen by almost 1.9 million barrels in the week, as against an expected drop of over 2 million barrels. The report also stated U.S. crude production struck a record 11.1 million bpd in the week.
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