Photo: Enrique Marcarian / Reuters
Oil can rise to one hundred dollars per barrel in the foreseeable future, writes Bloomberg citing oil traders and market participants. The reason for sanctions against Iran and the situation in Venezuela.
The publication interviewed the co-founder of Mercuria Energy Group Ltd Daniel Jaggi and the top Manager of oil trader Trafigura Ben Lococo. Jaggi predicts a sharp growth of quotations by the end of 2018.
According to him, the market is not a sufficient amount of the proposal, which could compensate for the loss of two million barrels of daily supply, which now have on Iran. In November will come into force a new embargo on the supply of fuel to the United States from this country.
LOCOG expects prices will rise in the beginning of next year and points to another factor — the decline in production in Venezuela because of problems in the local oil industry. In June, they have already led to the revision of the agreement OPEC+, when the participants agreed to increase average daily production. Also Locock pointed to difficulties with the supply of us shale oil, which will also affect the overall level of supply.
Oil prices have not risen to levels above one hundred dollars per barrel since September 2014. Then to a drop in prices resulted in excess supply.
Video, photo All from Russia.