Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Oil Prices near 4-Year Highs on Looming Supply Crunch Fears

Published 09/25/2018, 08:45 AM
Updated 09/25/2018, 08:45 AM
© Reuters.  Oil near 4-year highs on looming supply crunch fears - Oil prices were trading within reach of four year highs on Tuesday amid fears over a looming supply crunch after global producers decided against any increase in production despite calls from U.S. President Donald Trump for action to cool prices.

Global benchmark Brent crude futures were up 0.72% at $81.08 a barrel by 08:44 AM ET (12:44 GMT). Prices hit a high of $81.48 on Monday, the most since November 2014.

Crude Oil WTI Futures for November were up 0.46% at $72.42, near Monday’s high of $72.74, the strongest level since the week ended July 8.

Oil has rallied amid worries over Trump’s plans to reduce Iranian crude shipments to zero through sanctions slated for Nov. 4.

A meeting on Sunday of the Organization of the Petroleum Exporting Countries and non-OPEC members, including top producer Russia, ended with no formal recommendation for any additional supply boost to offset falling supply from Iran.

Trump has also said he would sell supplies from the U.S. Strategic Petroleum Reserve, if necessary, to curb rising prices at the pump.

Khalid al-Falih, energy minister of Saudi Arabia, the kingpin of OPEC, rebuffed Trump’s calls on Sunday, saying: “I do not influence prices.”

“The real reason they refused to increase could be that they don’t have enough spare capacity to bring on line quickly,” Phil Flynn, energy analyst at Price Futures Group in Chicago, said, referring to the OPEC decision.

Iran's OPEC governor Hossein Kazempour Ardebili was quoted by Reuters as saying that Saudi Arabia and Russia “got prices higher and they are going to get them higher still" and “cannot deliver the extra capacity that they claim”.

In other energy trading, Gasoline RBOB Futures rose 0.17% to $2.0507 per gallon, while heating oil rose 0.64% to $2.30 a gallon. Natural gas futures were up 0.33% to $3.039.

Latest comments

This price hike is just a hype...there is no shortage of supply and any price above $80 is only a bonus to OPEC and its allies...
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.