Will Brent Crude Oil reach $100/b?
Crude oil prices touched new four-year highs a day before. Brent crude - the international benchmark for crude oil - touched $82.20 a barrel during yesterday’s session. That marked a level beyond the last peak witnessed in November 2014. Expectation of a tightening supply in the global oil market in the coming months has pushed crude oil prices higher. The latest bout of weakness in crude oil prices comes ahead of start of sanctions by the United States on Iran, the third-largest producer among OPEC (Organization of the Petroleum Exporting Countries) member countries. India gets over 82 per cent of its crude oil supplies via imports. The onslaught of rising oil prices and a depreciating rupee is likely to widen India's current account deficit (CAD) and fiscal deficit.
Massive Increase in Brent Oil; the week in energy
Crude prices could rise above $100/b as market uncertainties stack up including sanctions on Iran, Venezuelan production concerns, tighter crude inventories and Saudi spare capacity, oil traders said at the S&P Global Platt’s Asia Pacific Petroleum Conference in Singapore. The US sanctions on Iran threaten to cut Iran's crude exports to as little as 1 million-1.3 million b/d from over 2.5 million b/d.