Brent oil edged further away from a four-year high on Wednesday and US crude fell, after the US said it would ensure crude markets are well supplied before sanctions are re-imposed on Iran and as President Donald Trump criticised high prices.
Mriganka Jaipuriyar, associate editorial director, Platts believes the prices of crude have seen a rise due to uncertainty on its supply. He added that the prices are heading close to $82 per barrel.
Jaipuriyar said, “Prices have breached the $80 per barrel mark and they are heading close to $82 per barrel. I think there is a lot of supply concerns and uncertainty around supply which has led to the recent rise in prices,"
“At Platts Analytics we have ourselves raised our estimate for how much Iranian oil is expected to disappear from the markets from November and we have raised it from 1.4 million barrels per day to 1.7 million barrels per day. So there is a lot of supply uncertainty, supply risk which are pushing prices higher,” she added.
Jaipuriyar also said that they have not raised its Brent forecast. “For December we are still maintaining a forecast of $79 per barrel. So we have not yet raised that forecast because we do see some supply availability in the market out there which will keep a lid on prices."