Brent oil has almost reached its highest level in four years before sanctions imposed by Iran, but concerns about demand are imminent

SINGAPORE (Reuters) – Oil prices have firmly opened Monday, and Brent was close to its highest level in nearly four years, before US sanctions against Iran come into effect next month.

Brent crude oil futures, LCOc1, traded at $ 83.04 per barrel at 0057 GMT, up 31 cents or 0.4% from their last close close to 83 , 07 dollars reached during the last session – the highest level since November 2014.

Futures contracts on WTI (West Texas Intermediate) CLc1 US futures rose 23 cents, or 0.3%, to $ 73.48 per barrel.

WTI prices were supported by a number of stagnant drilling rigs, which portends a slowdown in US crude oil production C-OUT-T-EIA.

Brent has been pushed up by the imminent sanctions against Iran, which will begin targeting its oil sector from Nov. 4.

There had been expectations that China would ignore US sanctions. However, China Sinopec (600028.SS) halves Iranian crude loadings this month, a sign that Washington's pressures are having an effect.

"If Chinese refiners comply with US sanctions more fully than expected, the market equilibrium should tighten even more aggressively," wrote Edward Bell, commodity analyst at Emirates Bank NBD in a note published on Sunday.

US President Donald Trump on Saturday called on Saudi King Salman to discuss ways to maintain an adequate supply once Iranian exports are hit by sanctions.

"Until OPEC offers a huge offer, traders will continue to push even harder," said Stephen Innes, head of Asia Pacific transactions at Oanda in Singapore.

"Even if they (Saudi Arabia) wanted to bow to President Trump's wishes, how much spare capacity does the Kingdom have?" Asked Innes.

"We will find out very soon that about 1.5 million barrels (per day) of Iranian oil will be offline on November 4th. If the market estimates that Saudi Arabia's capacity is operating at 10.5 million barrels a day … oil Prices will skyrocket with the spark of $ 100 a barrel, making it a goal reasonable, "said Innes.

(GRAPHIC: US ​​crude oil production, number of rigs: reut.rs/2IrBi7E)

Slowing down?

With soaring oil prices, their inflationary effect on demand growth is causing concern, particularly in Asian emerging markets, where weakened currencies are still adding to the high costs of fuel imports.

Add to that the trade disputes between the United States and other major powers, especially China, and economic growth to 2019 could be eroded.

The growth of the Chinese manufacturing sector was already shaken in September by the weakening of foreign and domestic demand, revealed two surveys Sunday.

In Japan, the confidence of major manufacturers deteriorated in the last quarter to reach its lowest level in nearly a year, as companies felt the effects of rising raw material costs and the price of raw materials. deterioration of global trade conditions.

(GRAPH: Oil price in different currencies: tmsnrt.rs/2OffFwp)