Two weeks after Saudi Arabia announcement, that the kingdom expects continued growth of the oil market at least to levels of $80 per barrel by the end of the year, today amid the growth resumption, Brent breaks through the round mark of $80 per barrel. Oil continues to gain after yesterday's data on the fall in oil reserves in the US and amid concern about the consequences of sanctions against Iran. Oil returned to its highs since November 2014.
Oil rose this month to its highest level in more than three years after US President Donald Trump refused a pact between Iran and the world powers of 2015 that softened sanctions against the Islamic Republic in exchange for obstacles on its nuclear program. The International Energy Agency said that global oil surplus was eliminated by restricting OPEC production, but analysts warn that high oil prices could damage consumption and reduce demand growth forecasts.
On Wednesday, EIA reported that US crude oil inventories fell 1.4 million barrels last week, while production rose to 10.7 million barrels a day. Despite the growth in US production, which has exceeded 10 million barrels per day since the beginning of February, traders continue to raise the price of Brent, not caring about the shale production. We already wrote earlier that there are all signs of speculative growth in the market.
As for today's growth, in addition to yesterday's data, the market was supported by Goldman Sachs statements , according to which shale oil in America can not replace the potential drop in oil supplies in Iran after the US restored sanctions against the third largest producer of OPEC.