Wednesday, 12 September 2018

Oil pushes past $80 a barrel to its highest level this year

Oil has risen above $80 a barrel to its highest level this year amid concerns about supplies from Iran and a fall in US stockpiles.

Brent crude rose more than 1% to $80.13 - the first time it has breached $80 since late May.

The rise reflects concern about the impact of US sanctions against Iran that will target oil exports.

"Iran is increasingly becoming the preoccupation of the crude market," said consultants JBC Energy.

"The last couple of weeks have seen the expected squeeze on Iranian crude flows taking shape, with overall outflows down markedly."
Gordon Gray, HSBC's global head of oil and gas equity research, said there were "real risks" that Brent could hit $100 a barrel.

"The fact that much higher supply is already needed from the likes of Saudi Arabia - and the low levels of spare capacity remaining - leave the global system highly vulnerable to any further significant outage," he said.

BBC     News.

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