04-09-2018 05:00 PM
Oil prices were diverse on Tuesday morning. Trade was likely to be sluggish as U.S. stock markets were closed on Monday for a holiday, while news that Oman’s oil and gas minister said oil prices are doubtful to rise above $80 left the people speechless.
Oil was trading higher at $ 70.14 at the time of preparing this report.
Oman’s Minister of Oil and Gas Mohammed bin Hamad Al Rumhy, told on Monday that he believed prices were currently “fair.” He added - "I think for the rest of this year we should see stability between $70 and the high 70s (dollars a barrel), or low 70s to high 70s."
"Because this is the wish of all of us who are cooperating with OPEC to offer the market with enough crude to ensure that the consumers are not impacted and we think that the current price is a fair price.”
Oil prices have been determined higher in the past few months as demand for oil surpasses supply and upcoming U.S. sanctions against Iran have also sustain prices. The financial sanctions adjacent to Iran will target the petroleum sector of Iran in November, when a drop of crude supply is likely.
Iran is the third-biggest producer in the Organization of the Petroleum Exporting Countries (OPEC), providing around 2.5 million barrels per day (bpd) of crude and condensate to markets this year, corresponding to around 2.5% of global consumption.
In the interim, production by the OPEC rose 220,000 barrels per day (bpd) in August to a high of 32.79 million bpd in a survey held.
China-U.S. trade worries also remained in centre as news said the Trump administration was set to enforce tax on an added $200 billion of Chinese goods within Thursday.