Oil posted the longest string of quarterly gains in more than a decade as impending supply disruptions threaten to fracture a global market with little margin for error.<\/p>\n
Futures rose 1.6 percent in New York on Friday while London-traded crude racked up its fifth quarterly advance, a streak not seen since the first half of 2008. This historical echo comes as consumers once again eye supply disruptions and\u00a0worry about the availability\u00a0of backup supplies, just as they were a decade ago when the benchmark hit an all-time high above $147.<\/p>\n
“The market is getting more nervous about Iranian sanctions especially on reports that Sinopec is cutting back” on purchases from the Persian Gulf nation, said Phil Flynn, senior market analyst at Price Futures Group.<\/p>\n
Oil has risen to the highest in almost four years in London after OPEC showed little enthusiasm for raising output despite President Donald Trump\u2019s demand for lower prices. The world will need additional supplies as U.S. sanctions dissuade major importers including\u00a0India\u00a0and South Korea from purchasing Iranian oil. Chinese refiner Sinopec is slashing crude loadings from the nation this month, Reuters reported.<\/p>\n
\u201cThere is concern in the market that the loss of barrels from Iran and Venezuela is not going to be made up for through extra supplies from particularly Saudi Arabia and Russia,\u201d said Gene McGillian, manager of market research at Tradition Energy. \u201cWorries about trade relations affecting economic growth have fallen away.\u201d<\/p>\n
Trading houses such as\u00a0Trafigura Group Pte Ltd\u00a0and\u00a0Mercuria Energy Group Ltd\u00a0have predicted prices will exceed\u00a0$100 a barrel. Banks including\u00a0Bank of America Corp.\u00a0and\u00a0JPMorgan Chase & Co. aren\u2019t quite that bullish, but are lifting their forecasts. Meanwhile, BP Plc and Total SA\u00a0cautioned\u00a0that such a rally would hurt demand, especially as U.S.-China trade tensions escalate.<\/p>\n
See Also: After Three Years of Talking, Mexico May Finally Buy U.S. Crude<\/p>\n
Brent for November delivery advanced $1 to settle at $82.72 a barrel on the ICE Futures Europe exchange in London. The November contract expires on Friday.<\/p>\n
West Texas Intermediate for November delivery rose $1.13 to close at $73.25 on the New York Mercantile Exchange. It\u2019s trading at an $9.47 discount to Brent. Total volume traded was about 15 percent below the 100-day average.<\/p>\n
Investors are now watching to see what Trump will do next after U.S. Energy Secretary Rick Perry ruled out the release of oil from the Strategic Petroleum Reserve, saying the move would have \u201ca fairly minor and short-term impact.\u201d Earlier this week, the president\u00a0accused\u00a0the Organization of Petroleum Exporting Countries of \u201cripping off the rest of the world.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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