Major oil trading houses are predicting the return of $100 crude for the first time since 2014 as the market braces for the loss of Iranian supplies because of US sanctions. “In my view, that makes it conceivable to see a price spike north of $100 a barrel. also flagged the possibility of triple-digit crude prices in a 24 Sept research note.Citigroup Inc.”Brent crude, the benchmark for more than half the world’s oil, was trading up While Citi is pricing in Brent (ICE) crude at around $80 for the quarter ahead, balances are precarious and the lack of spare capacity could see crude pricing well above.

or even $100 should all of the potential risk in the market materialise,” analysts including Ed Morse said in the note.6 per cent at $80. the world’s most valuable firms and spurred investment in risky billion-dollar oil projects. The biggest source of new global supply, US shale, is also experiencing growing pains as pipeline bottlenecks and workforce issues may hamper growth, he said.02 a barrel at 1:34 p.“It’s going to be significantly less than it was, and probably lower than most people expected when the sanctions were announced &China PPR Fittings Suppliers8212; hence the higher prices,” Luckock said at the APPEC event.m. –BloombergThePrint’s YouTube channel is now active and buzzing. It could prompt Washington to consider extraordinary measures, including the use of the Strategic Petroleum Reserve, to cool down fuel prices ahead of the US mid-term elections.

The market does not have the supply response for a potential disappearance of 2 million barrels a day in the fourth quarter,” Jaeggi said in a speech at the S&P Global Platts Asia Pacific Petroleum Conference (APPEC) in Singapore. However, the consensus has now moved to as much as 1.Key TakeawaysSuch a price rally would mark the first time since the summer of 2014 that oil would return to the $100-a-barrel level that became the norm in the early part of this decade.Mercuria Energy Group Ltd. Trafigura Group co-head of oil trading Ben Luckock sees $90 oil by Christmas and $100 in early 2019. Such prices made oil companies like Exxon Mobil Corp. Singapore time. Please subscribehere.In addition to US sanctions cutting Iranian supply, the world is also dealing with a decline in Venezuelan oil production due to an economic crisis in the Latin American nation, according to Trafigura’s Luckock.

The Iranian market doesn’t have much capacity left to replace more than 2 million barrels a day of exports that could be lost to sanctions. co-founder Daniel Jaeggi said prices may spike to over $100 a barrel in the fourth quarter because the market doesn’t have much capacity left to replace more than 2 million barrels a day of Iranian exports that could be lost to sanctions.5 million barrels daily as the US is “incredibly serious” about its measures, he said.When Trump in May announced plans to reimpose sanctions on Iran’s oil exports, the market estimated a cut of about # 300,000 to 700,000 barrels a day, according to Trafigura’s Luckock. The talk of $100 crude comes just hours after OPEC and its allies rebuffed pressure from US President Donald Trump to immediately boost production to lower oil prices