Friday’s data from Baker Hughes (BHGE) showed that the number of active USA rigs drilling for oil (http://www.marketwatch.com/story/baker-hughes-reports-a-rise-in-us-oil-rig-count-for-third-straight-week-2018-04-20), a key metric of activity in the sector, rose for a third straight week. Earlier losses were fed by strength in the US dollar, and news of a higher USA rig count late last week, which pointed to further growth in domestic crude production.
Advertisement
“Iran will take all the necessary measures to keep its oil market share because of the political atmosphere and the American president’s decision on the deal”, Zanganeh said when asked about rumours on offering discounts to India on oil sales. OPEC will meet in June to decide whether to extend the production-cut agreement.
Bank of America Merrill Lynch forecasts Saudi Arabia will continue to push forward with its reform process regardless of the rising price of oil. She is the author of several books, including “Partners in Need: the Strategic Relationship of Russian Federation and Iran” and “Energy Politics”.
There’s still room for oil prices to rise and cooperation between producers should continue at least until their scheduled expiry at the end of the year, and possibly into 2019, said Saudi Arabia, which wants to see oil prices near US$80 a barrel. According to the experts, new sanctions against Tehran will raise oil prices by up to 5 United States dollars per barrel.
The U.S. trade action against Russian Federation, and potentially, against Iran, has resulted in a slump in Russia’s ruble and Iran’s rial.
OPEC members deny that they are principally responsible for the increase in oil prices over the previous year or that they should adjust their production policy in response.
Meanwhile, US President Donald Trump’s pledges to withdraw from the Iran nuclear deal that helps Tehran to export more oil have become another factor boosting crude prices. Iran pumped about 4% of the world’s oil production in March.
The US oil market surplus is gone with the total liquid stockpile falling below the 5-year average.
Advertisement
Light Sweet Crude Oil is one of the most widely known and actively traded grade of crude oil. Were prices to approach $100, the flood of new supply could be dramatic, particularly if the Trump administration’s threats of “consequences” meant some form of additional support for further exploration and production. The fundamentals are mostly bullish at this time. Traders are saying the markets are being driven by expectations that supplies will tighten because gasoline and other products are rising at the same time the US may reimpose sanctions against Iran and OPEC-led output cuts remain in place.
