Oil prices are rising on Tuesday amid signs that Saudi Arabia will not take measures to restrain the rise in the market in the near future.
The price of November futures for Brent crude on the London ICE Futures exchange to 14:15 kV is $79,06 per barrel, or $1,01 (1,29%) above the closing level of the previous session.
The price of the futures on WTI crude oil for November in electronic trading on the new York Mercantile exchange (NYMEX) had risen by this time to $0,86 (1,25%) to $69,77 a barrel.
Saudi Arabia is ready to allow the rise in oil prices, at least in the short term until the market adjusts to the impact of us sanctions against Iran, Bloomberg reported, citing informed sources.
According to sources, Minister of energy of Saudi Arabia Khalid al falih, and a number of other Saudi officials met with investors, traders and other market participants in London, Houston and Washington to discuss the situation in the oil market.
During the exchange of views, the representatives of Saudi Arabia were given to understand that they do not intend to contribute to the rise in oil prices above $80 per barrel, however, believe that to avoid them rising for some time, it may not be possible, the sources noted.
“This opinion of Saudi Arabia emphasizes the risk that in the short term, the market will be difficult to keep oil prices between $70-80 per barrel”, — said the head of strategy Department at the commodities markets, Saxo Bank, OLE Hansen.
Iran reduced exports by about 35% since April of this year. Oil exports from this country in the first week of September averaged 1.6 million barrels per day (b/d), while in April it reached 2.5 million b/d, according to industry data.
Meanwhile, the escalating trade dispute between the US and China worsens the prospects for oil demand. On the night of Tuesday the President of the United States Donald trump instructed trade representative Robert Leitheiser to impose new duties on imports to the country of Chinese goods worth $200 billion a year. Import duties are effective from September 24 at the 10% level, but in 2019 they can be raised to 25%, if Beijing does not make concessions to Washington.