OPEC oil output fell in September to its lowest this year, a Reuters survey found on Thursday, as unrest disrupted Libyan supply and Iraq made progress in complying with its cutbacks pledged to the wider OPEC+ alliance.
Bjarne Schieldrop, chief commodities analyst at SEB, discusses the oil market outlook amid elevated tensions in the Middle East.
U.S. crude oil has gained nearly 5% this week as traders fear Israel could retaliate against Iran by hitting crude infrastructure. OPEC+ spare oil capacity is keeping prices from running higher, analysts say.
Russian Deputy Prime Minister Alexander Novak said the OPEC+ group of leading oil producer will continue to play a decisive role in global oil market stabilisation.
The crude oil market continues to see a lot of noise, but at this point in time, the market looks likely to try to break to the upside. All things considered, this is a market that will continue to try to sort out the upside before its all said and
Recent options data indicates that investors are betting on further increases in oil prices due to escalating hostilities between Israel and Iran, which could threaten Middle Eastern energy infrastructure. For the first time since mid-August, call options have surpassed put options in terms of premium.
Oil markets are being too complacent given the risk of major supply disruptions in the Middle East, analysts told CNBC on Thursday. Bjarne Schieldrop, chief commodities analyst at Swedish bank SEB, said that if Iran's oil infrastructure is wiped out, prices could "easily" go to $200-plus a barrel.
Oil futures rose Thursday, finding continued support as traders awaited Israel's response to a missile barrage earlier this week by Iran amid concerns of a wider Middle East conflict that could disrupt flows of crude from the region.
Brent crude climbed near $75 a barrel, on course for the longest run of daily gains since August, as Oil rose for a third day with traders assessing supply risks in the Middle East. Paul Wallace reports on Bloomberg Television.
Middle East tensions push crude prices higher, but rising U.S. inventories cap further gains. Can OPEC's spare capacity keep oil markets stable amid conflict?
OPEC has enough spare oil capacity to compensate for a full loss of Iranian supply if Israel knocks out that country's facilities but the producer group would struggle if Iran retaliates by hitting installations of its Gulf neighbours.
Simon Ballard, chief economist at First Abu Dhabi Bank, discusses oil market reactions to geopolitical tensions in the Middle East.