Oil price up as Trump calls OPEC to lower prices


J.P. Morgan said in its latest market outlook, published on Friday, that "a spike to $90 per barrel is likely" for oil prices in the coming months due to the Iran sanctions. The meeting concluded without any decision to increase oil production, a departure from the organization's commitment in June to hike supply of the commodity.

The talk of $100 crude comes just hours after OPEC and its allies rebuffed pressure from U.S. President Donald Trump to immediately boost production to lower oil prices.

With Brent crude already jumping to an nearly four-year high on Monday, that's exactly the kind of price surge President Donald Trump has been seeking to prevent by pressuring the Organization of Petroleum Exporting Countries to raise production. Bank of America Merrill Lynch joined JPMorgan Chase & Co.in anticipating higher prices down the line - the former expects crude to reach US$95 a barrel in the first half of next year.

Iran's OPEC governor Hossein Kazempour Ardebili insisted on Sunday that Iranian production was steady at 3.8 million bpd but appeared to soften his stance on potential increases in OPEC output.

The US President said in a tweet last week that Opec "must get prices down now!" by raising global output.

The threats of disruption as well as the early supply cuts have helped to lift Brent crude futures to almost $80 a barrel this month, a level not seen since 2014.

OPEC isn't just grappling with US sanctions cutting Iranian supply.

Arsenal announce the departure of Ivan Gazidis
Milan, meanwhile, released a statement confirming Gazidis would begin his tenure at the club from December 1. I believe in the positive force of change, both for me and for the club.

"I do not influence prices", Saudi Energy Minister Khalid al-Falih told reporters in Algiers ahead of a meeting of OPEC and non-OPEC energy ministers.

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.

This year the global economy has been expanding strongly, leading to growth in oil consumption and pushing up crude prices. "We in Saudi Arabia have not seen demand for any additional barrel that we did not produce".

Oil has rallied since the lows of August as speculation swirls over whether OPEC and its allies will boost production, with sanctions on the Middle East nation's exports set to take effect in November. The biggest source of new global supply, USA shale, is also experiencing growing pains as pipeline bottlenecks and workforce issues hamper growth.

Crude oil price curves are now in backwardation, with front-month contracts more expensive that later-dated futures.

"All this will potentially reflect on oil prices".

"Were they do so the oil market would be even more uncomfortably tight than we forecast for 2019 as spare capacity is eroded", Mr Bell added.