The oil company, while Iran sanctions OPEC, Russia resists calls to increase production

SINGAPORE (Reuters) – Oil markets remained strong on Tuesday, with Brent crude almost reaching its highest level in four years.

Oil markets have been pushed by the imminent US sanctions against Iran and by the reluctance or inability of the cartel of predominantly Middle East producers of OPEC and Russia to increase their production .

The Brent LCoC1 futures price was $ 81.32 per barrel at 0209 GMT, up 12 cents or 0.2 per cent, and close to $ 81.48 a barrel the day before, the highest since November. 2014.

United States West Texas Intermediate (WTI) CLc1 futures were at $ 72.10 per barrel, up 2 cents from their latest settlement.

The United States, starting in November, will target Iranian oil exports with sanctions, and Washington is pressuring governments and businesses around the world to align and reduce their purchases in Tehran.

"Iran will lose considerable export volumes and, given the reluctance of OPEC +, the market is ill equipped to fill the gap," said Harry Tchilinguirian, global head of BNP Paribas strategy Tuesday. OPEC + includes Russia.

(For a graph on "Brent crude price history," click tmsnrt.rs/2xATyY1)

US President Donald Trump has demanded that the Organization of the Petroleum Exporting Countries (OPEC), of which Iran is a member, and Russia increase supplies to offset the expected fall in Iranian exports.

However, OPEC and Russia have so far rejected these calls.

"The oil market is, in my opinion, likely to retain these price gains … Any formal decision on the producer group's oil production, unless there is an extraordinary meeting, will only take place" 39 at the December meeting. Thus, the window period for oil prices to potentially increase earnings is wide enough, Iran loses its exports and OPEC + remains on hold, "said Tchilinguirian.

Ashley Kelty, an oil and gas research analyst with Cantor Fitzgerald, said oil prices could soon hit $ 90 a barrel.

"We do not think OPEC can significantly increase production in the short term because the physical reserve capacity of the system is not very high," said Kelty.

Bank of America Merrill Lynch announced it has raised its Brent crude oil price forecast for 2019 from $ 75 per barrel to $ 80 per barrel, while its WTI crude oil forecast has increased $ 2 to $ 71 per barrel in 2019.

The US bank said that "the Iranian factor could dominate the market in the short term and cause a spike (in the price of crude oil)," adding that "emerging market demand concerns could reappear later. ".

Indian refiners, who are facing high commodity prices and a sluggish rupee, are planning to cut their oil imports, which could be the first sign that high prices are starting to weigh on demand.