Brent hits $80 for first time since may
Crude climbed to $80 a barrel in London for the first time since May amid signs that global supplies are shrinking.
Brent futures rose as much as 1.4 per cent on Wednesday, while the US crude benchmark added as much as 2.9 per cent. US efforts to isolate Iran have disrupted shipments from OPEC’s No 3 supplier at the same time that American crude stockpiles dwindled to a 3 1/2-year low.
Meanwhile, Hurricane Florence threatened East Coast fuel markets.
“What you’re seeing is a tightening inventory picture from the Iranian sanctions globally,” said Nick Holmes, an analyst at Tortoise in Leawood, Kansas, which manages $16 billion in energy-related assets.
As investors assessed the impact of Iranian sanctions, the unanswered question is whether mega-producers Saudi Arabia and Russia will jump in to fill supply gaps. Russia said it has the capacity to set a new oil-production record but won’t decide whether the market needs those additional supplies before an OPEC meeting this month.
Brent Hits $80 for First Time since May
West Texas Intermediate for October delivery climbed $1.98 to $71.23 a barrel at 11:13 am on the New York Mercantile Exchange. Total volume traded was about 47 per cent above the 100-day average.
Brent for November settlement advanced 94 cents to $80 a barrel on the ICE Futures Europe exchange, after earlier rising to as high as $80.13.
Florence’s huge size and potential for a towering sea surge and torrential rains could result in significant damage from the most powerful hurricane to hit the region in decades.
Brent futures rose as much as 1.4 per cent on Wednesday, while the US crude benchmark added as much as 2.9 per cent. US efforts to isolate Iran have disrupted shipments from OPEC’s No 3 supplier at the same time that American crude stockpiles dwindled to a 3 1/2-year low.
Meanwhile, Hurricane Florence threatened East Coast fuel markets.
“What you’re seeing is a tightening inventory picture from the Iranian sanctions globally,” said Nick Holmes, an analyst at Tortoise in Leawood, Kansas, which manages $16 billion in energy-related assets.
As investors assessed the impact of Iranian sanctions, the unanswered question is whether mega-producers Saudi Arabia and Russia will jump in to fill supply gaps. Russia said it has the capacity to set a new oil-production record but won’t decide whether the market needs those additional supplies before an OPEC meeting this month.
Brent Hits $80 for First Time since May
West Texas Intermediate for October delivery climbed $1.98 to $71.23 a barrel at 11:13 am on the New York Mercantile Exchange. Total volume traded was about 47 per cent above the 100-day average.
Brent for November settlement advanced 94 cents to $80 a barrel on the ICE Futures Europe exchange, after earlier rising to as high as $80.13.
Florence’s huge size and potential for a towering sea surge and torrential rains could result in significant damage from the most powerful hurricane to hit the region in decades.