Crude on biggest tear in a decade

NEW YORK — Oil posted the longest string of quarterly gains in more than a decade as impending supply disruptions threaten to fracture a global market with little margin for error.

Futures rose 1.6 per cent in New York on Friday while London-traded crude racked up its fifth quarterly advance, a streak not seen since the first half of 2008. This historical echo comes as consumers once again eye supply disruptions and worry about the availability of backup supplies, just as they were a decade ago when the benchmark hit an alltime high above $147.

Brent for November delivery advanced $1 to settle at $82.72 a barrel on the ICE Futures Europe exchange in London. The November contract expires on Friday.

West Texas Intermediate for November delivery rose $1.13 to close at $73.25 on the New York Mercantile Exchange. It’s trading at an $9.47 discount to Brent. Total volume traded was about 15 per cent below the 100-day average.

“The market is getting more nervous about Iranian sanctions especially on reports that Sinopec is cutting back” on purchases from Iran, said Phil Flynn, senior market analyst at Price Futures Group.

Oil has risen to the highest in almost four years in London after Opec showed little enthusiasm for raising output despite US President Donald Trump’s demand for lower prices. The world will need additional supplies as US sanctions dissuade major importers including India and South Korea from purchasing Iranian oil. Chinese refiner Sinopec is slashing crude loadings from the nation this month, Reuters reported.