Brent crude climbed above $80 a barrel after OPEC and its allies signalled less urgency to boost output despite U.S. pressure to temper prices.
Futures in London rose as much as 1.7 per cent. OPEC and its partners gave a tepid response to President Donald Trump’s demand that rapid action be taken to reduce prices, saying they would boost output only if customers wanted more cargoes. Brent could rise to $100 for the first time since 2014 as the market braces for the loss of Iranian supplies due to U.S. sanctions, according to Mercuria Energy Group Ltd. and Trafigura Group.
Oil has rallied since the lows of August as speculation swirls over whether OPEC and its allies will boost output as the sanctions on the Middle East nation’s exports nears. Still, a full-blown trade war between the U.S. and China could imperil global economic growth that underpins crude demand as the two countries begin a new round of tariffs on each other’s goods.
Oil investors are “trading the weekend news very favourably,” said Stephen Innes, Singapore-based head of Asia Pacific trading with Oanda Corp. “Saudi Arabia and Russia ruled out any expeditious supply increases at the Algeria meeting while decidedly ignoring U.S. President Trump’s call to increase supplies and ease price pressures.
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