Oil hits fouryear peak after Opec+ shows no sign of turning on the taps
Crude oil prices shot to a four-year high on Tuesday, catapulted by imminent US sanctions on Iranian crude exports and the apparent reluctance of the Organization of the Petroleum Exporting Countries (Opec) and Russia to raise output to offset the potential hit to global supply.
Brent crude futures were up 61 cents at $81.81 a barrel by 1121 GMT, having touched a session peak of $82.20, the highest price since November 2014.
The oil price is on course for its fifth consecutive quarterly increase, the longest stretch of gains since early 2007, when a six-quarter run led to a record high of $147.50 a barrel.
US crude futures were up 30 cents at $72.38 a barrel, close to their highest since mid-July.
The US will target Iran’s oil exports with sanctions from November 4, with Washington applying pressure on governments and companies around the world to fall into line and cut their purchases.
“Iran will lose sizeable export volumes, and given Opec+ reluctance to raise output, the market is ill-equipped to fill the supply gap,” Harry Tchilinguirian, global head of commodity markets strategy at French bank BNP Paribas, told the Reuters Global Oil Forum on Tuesday.
Mohammad Barkindo, secretary general of the Opec said in Madrid on Tuesday that it is important for OPEC and its partners, including Russia, to cooperate to ensure they do not “fall from one crisis to another”.
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