Oil prices hovered below a three-year high last week, but the rapid run up in oil prices from below USD45 a barrel just seven months ago has lead many investors to ask if USD70 a barrel will mark the peak for the market? Learn more
Oil soared as much as 10% after OPEC approved the first supply cuts in eight years in an effort to ease a record glut and stabilise global markets, but how effective will the proposed cuts be in raising oil prices?
The Saudi “cut” offer that rallied crude yesterday was nothing but a strawman to enable them to pinpoint blame on Iran for the failure of talks. Unwilling to freeze its output – even based on the ‘offer’ of Saudi cuts – Iran’s Bijan Zanganeh exclaimed “it’s not our agenda to reach agreement in these two days,” blowing a hole in the hope train for crude’s recovery.
Iran wants to raise its crude production to 4 million barrels a day, Bijan Namdar Zanganeh said in an interview Tuesday. OPEC’s third-largest producer – with daily output of 3.6 million barrels last month – will talk to other members at the International Energy Forum in the Algerian capital and it’s possible the group could reach a formal supply deal at its November meeting in Vienna, he said.