SINGAPORE (Reuters) – Brent crude rose on Tuesday around the sixth day, spending $ 75 per barrel, as expectations are rising that gasoline prices will rise while the US sanctions against Iran and OPEC can impose-guided production cuts persist.
Brent crude oil futures LCOc1 climbed to as high as $ 75.20 a barrel in early trading on Tuesday, the highest since November 27, 2014. Brent still stood at $ 75 a barrel at 0311 GMT and rose 29 cents or 0.4 percent from its last close.
Brent's six-day uptrend is the strongest since a series of gains in December, more than 20 percent above its February 2018 low.
U.S. The West Texas Intermediate (WTI) CLc1 crude oil futures were $ 68.98 a barrel, up 34 cents, or 0.5 percent, from the last settlement. On Thursday, WTI rose to $ 69.56, its highest level since November 28, 2014.
Markets were resumed by supply cuts to the Organization of Petroleum Exporting Countries (OPEC), which were launched in 2017 with the aim of restoring the market ,
The potential of recent US sanctions against Iran is also pushing up prices.
Stephen Innes, Asia-Pacific Trade Director for Futures Brokerage OANDA said new sanctions on Tehran "could raise oil prices by as much as $ 5 a barrel"
The United States has until May 12 Time to decide on it will leave the nuclear deal with Iran and impose sanctions on OPEC's third-largest producer, further exacerbating global supplies.
"Crude oil prices are now at their highest level in three years, reflecting continued concerns about geopolitical tensions in the Middle East, which accounts for almost half of world oil supply," ANZ Bank said.
OPEC's efforts to streamline its markets are led by top exporter Saudi Arabia, where state-controlled oil company Saudi Aramco is demanding higher prices ahead of a partial quotation planned for this or in 2019.
"Oil Starch That comes from Saudi Arabia's recent commitment to raise oil back to $ 70 to $ 80 a barrel and inventories back to normal," said William O Loughlin, an investment analyst Australian company Rivkin Securities.
OPEC's supply cuts and threats of new sanctions are just as noticeable as demand in Asia, the world's largest oil-consuming region, has hit record highs as new and expanded refineries have moved from China to Vietnam.
One of the few factors that is adding further pressure to oil prices is US output, which has risen more than a quarter since mid-2016 to over 10.54 million barrels a day (bpd). Arabia overhauls production of around 10 million bpd.
US crude oil is increasingly entering global markets from Europe to Asia due to its increasing production, undermining OPEC's efforts to streamline the market.
(Graph: Asia Crude Oil Demand – Reut.rs/2K2V89x)
(Chart: Russia vs. Saudi vs. US Oil Production – reut.rs/2JlrzPq)
Reporting by Henning Gloystein; Editorship of Joseph Radford and Christian Schmollinger