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Oil advanced Friday in a context of increasing global supply deficit, with the global benchmark for prices recording a fifth straight quarter of gains and a new multi-year high.
Brent crude added 1, or 1.2%, to $ 82.72 a barrel on the London Stock Exchange to post its longest consecutive quarterly advance series since 2008. On the New York Mercantile Exchange, the Light crude for November delivery climbed $ 1.13 (1.6%). at $ 73.25 a barrel, closing the quarter at 1.2% below its June peak.
Overall, the market was recently supported by the decline in Iranian crude exports before US economic sanctions against the oil industry of the Islamic Republic, which will come into effect on November 4.
"Iranian oil exports are falling faster than expected," said Giovanni Staunovo, commodity analyst at UBS Wealth Management.
Officials of the state-owned National Iranian Oil Co. said they tentatively forecast crude deliveries to be reduced to about 1.5 million barrels a day, down from 2.3 million barrels a day in June, according to knowledgeable people.
Facilities at the Pardis Petrochemical Complex in Assalouyeh, Iran, where oil exports are expected to have declined this month in anticipation of the re-imposition of US sanctions.
Photo:
/ Associated Press
In May, President Trump withdrew the United States from a 2015 international agreement to curb the Iranian nuclear program, paving the way for the reimposition of economic sanctions.
At the same time, the oil rally was revived earlier this week because the US "does not plan to exploit its strategic oil reserves and Saudi Arabia is taking a rather passive approach" to fill the void left by the Iranian deficit. .
The Organization of the Petroleum Exporting Countries – de facto under the leadership of Saudi Arabia – and its production allies, including Russia, agreed Sunday in Algiers to meet the production quotas in force in early 2017. Acceleration of the production that suppliers had accepted early in the summer to reduce the compliance with the initial agreement.
But producers refused to announce specific projects to further increase production, as many analysts had anticipated, apparently defying Mr Trump's calls for the cartel to increase production in order to cap prices. This decision pushed Brent Monday above $ 80 and at its highest level since November 2014.
Now, the "rise in oil prices shows little sign of capitulation," said Stephen Brennock, analyst at broker PVM Oil Associates Ltd.
On Friday, among refined products, gasoline futures rose slightly by 1.88 cents, or 0.9%, to $ 2.1012 per gallon. The diesel futures contract added 2.87 cents, or 1.2%, to $ 2.3518 per gallon.
Write to Christopher Alessi to [email protected] and Amrith Ramkumar at [email protected]
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