Oil prices at four-year high after OPEC rebuffs Trump

Iran We won’t let OPEC boost production

"The OPEC monopoly must get prices down now!"

Commodity merchants Trafigura and Mercuria said on Monday that Brent could rise to $90 per barrel by Christmas and even above $100 in early 2019 as markets tighten once US sanctions against Iran are implemented from November. Although he refrained from specifying how that could be done, Saudi Arabia is the only oil producer with significant spare capacity.

Brent for November settlement rose as much as 49 cents to $81.69 a barrel on the ICE Futures Europe exchange and traded at $81.62 at 3:45 p.m.in Tokyo.

"This is the oil market's response to the OPEC+ group's refusal to step up its oil production", said Carsten Fritsch, commodities analyst at Commerzbank in Frankfurt.

A second round of penalties targeting Iran's oil exports is due to come into effect in early November, and the USA administration has been pressuring other countries to cut their Iranian crude imports.

While the opposition parties have blamed the government for the rise in prices, the Centre has reiterated its stand that prices in India are a function of global crude oil moves.

Those are the highest prices since December of 2014, just before oil began its slide that took it down to $40 USA a barrel in 2015, discouraging investment in the oil patch.

Saudi Arabia Energy Minister Khalid al-Falih told reporters that participating countries have provided over the last three months "a lot of supply to offset decreases" in Iran, Venezuela and Mexico.

OPEC and other oil producers are considering raising output by 500,000 bpd to counter falling supply from Iran.

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He added that while Sonatrach could boost oil production by 200,000 barrels per day, there is no need for an imminent increase in supplies.

United States officials, including President Donald Trump, are trying to assure consumers and investors that enough supply will remain in the oil market while requesting producers raise their output.

A committee comprised of the Organization of the Petroleum Exporting Countries (OPEC) cartel and non-OPEC producers said it was satisfied with the current market outlook, which represented "an overall healthy balance between supply and demand".

As new USA sanctions against Iran come into force on November 4, importers would find it harder to buy oil from Tehran.

"We would expect oil to trend higher in the coming weeks".

Once U.S. production peaks, demand for OPEC's oil should grow again, rising by 10.5 MMbpd from 2017 to 2040.

Of course, the OPEC member most eager to take a stab at Trump was Iran, and Hossein Kazempour, OPEC representative for the Islamic Republic, did so by telling media that the brash billion aires incendiary tweets "are doing actually is [leading to] higher prices because the fundamentals even do not warrant this level of prices".

A decade ago, Brent crude surged to almost US$150 a barrel, only to crash just months later as high fuel prices and the global financial crisis triggered a slump in demand.

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