Lipow Oil Associates President Andy Lipow on how Hurricane Florence has impacted the USA oil industry.
Brent for November settlement traded at $79.19 a barrel on the ICE Futures Europe exchange, up 16 cents at 2:34 p.m.in Singapore.
Data from the InterContinental Exchange showed open interest in calls that give the owner the right to buy Brent futures at $80 and $85 by next week grew by almost 45 percent on Monday and Tuesday to an equivalent of 54 million barrels of oil.
He did not specify how crude producers would compensate for declining exports from Iran, with new USA sanctions due to hit the Islamic republic´s oil industry on November 4.
Ministers from the Organization of the Petroleum Exporting Countries and non-OPEC producers meet on Sunday to discuss compliance with output policies.
Bloomberg reported Tuesday, citing unnamed Saudi sources, the kingdom was now comfortable with prices above $80 per barrel, at least for the short-term.
"Mr. Trump's attempt to prevent Iran from appearing on the global crude oil markets has allowed Russian Federation and Saudi Arabia, which would not favor low prices, to pursue hostage-taking policies in the market", Iranian OPEC governor Hossein Kazempour Ardebili said on Saturday. In the first two weeks of September, it sold an average of 1.6 million barrels a day, down from 2.5 million barrels a day in April, according to Bloomberg tanker tracking.
Bloomberg reported on Tuesday, citing unnamed Saudi sources, that the kingdom was now comfortable with prices above US$80 per barrel, at least for the short term.
Trump says he wants to hear from Kavanaugh accuser
Politico reported on Tuesday that Bush said he and his wife, Laura, "have known and respected Brett Kavanaugh for decades". The tweets caught fire across social media as Republicans press ahead for Kavanaugh's Supreme Court nomination.
The prospect of Russian Federation and the US working together to achieve global supply and demand objectives is intriguing given the long-standing rivalry between the USA and OPEC; but it makes sense when one considers that both the USA and Russian Federation have a strong mutual ally in energy matters, namely, Saudi Arabia.
Russian Energy Minister Alexander Novak said an oil price between $70 and $80 was temporary and sanctions-driven, adding the long-term price would stand around $50 a barrel.
"The declaration of cooperation has come to stay", he said.
"It was a squarely bullish report", said John Kilduff, a partner at Again Capital Management in NY.
Russian Federation has told Israel it will take all necessary measures to protect its military personnel in Syria, the Foreign Ministry in Moscow said.
Oil markets dropped on Tuesday as the latest escalation in the Sino-US trade war clouded the outlook for demand, although concerns over tightening supply offered prices some support. The move was in retaliation for President Donald Trump's planned levies on $200 billion worth of Chinese goods.
The U.S. moves have gotten furious reactions from Iran, especially amid talk of American officials asking Russian Federation and Saudi Arabia to make up the difference.
The tariffs are likely to limit economic activity in both China and the United States.