Oil hits four-year high after OPEC output decision

Saudi energy minister rips Trump tweet: 'I do not influence oil prices'

Those fears have sent crude oil prices higher, with commodity traders Trafigura and Mercuria predicting prices could rise to more than $100 a barrel by early next year.

Meanwhile, Daniel Jaeggi, president and co-founder of Mercuria Energy Trading said worldwide crude oil prices could surpass the $100/b level, indicating that the global oil market does not have an adequate supply response for a potential reduction in Iranian supplies.

The so-called "OPEC+" group, which includes the likes of Russia, Oman and Kazakhstan, met at the weekend to discuss a possible increase in crude output, but the upshot of the gathering was that the group was in no rush to do so.

Some have said softening demand from trade tensions between the USA and China to offset loss of Iranian supply, but Tradition's McGillian said that unless trade tensions show signs of eroding Chinese demand, oil prices will surge further.

In addition, we have to remember we're dealing with a massive decline in Venezuelan oil.

As new United States sanctions against Iran come into force on November 4, importers would find it harder to buy oil from Tehran.

The last time we saw $100 oil was in 2014.

OPEC leader Saudi Arabia and its biggest ally outside the group, Russia, have pushed back against complaints by US President Donald Trump that oil prices are too high, Reuters reported.

As such, production problems in some countries have pushed the oil producer's alliance to cut output further than intended, helping to boost prices.

China slams USA 'intimidation' as new tariffs kick in
Boeing Co, the biggest USA exporter to China, dropped 1.1 percent and Caterpillar Inc 1.5 percent on the New York Stock Exchange. The move brings the amount of Chinese goods hit by duties to more than US$250 billion, roughly half of China's USA exports.

With supply and demand issues raging, $100 oil may not be far off at all.

Leaders from the Organization of the Petroleum Exporting Countries joined leaders from Russian Federation and other countries in Algiers to talk about keeping the market well supplied.

Khaled al-Falih was speaking at a meeting in Algiers of about twenty member countries and non-Opec member signatories by the end of 2016 an agreement by which they pledged to limit their offers to raise the price of crude oil.

OPEC and non-OPEC partners agreed on June 23 to boost output by 1 million b/d by reducing over-compliance with cuts that had been in place since January 2017.

Bank of America raised its average Brent crude oil price forecast for 2019 from $75 a barrel to $80 a barrel Monday.

Iran told OPEC its production had been steady in August at 3.8 million bpd.

"Balances are precarious and the lack of spare capacity could see crude pricing well above US$90 or even US$100, should all of the potential risk in the market materialize", analysts including Ed Morse said in the note. "The markets are adequately supplied".

Trump had tweeted last week that OPEC "must get prices down now!".

Iran's Organization of the Petroleum Exporting Countries (OPEC) governor Hossein Kazempour Ardebili, centre, attends OPEC's 10th meeting of the Joint Ministerial Committee to monitor the oil production reduction agreement of the Organization of the Petroleum Exporting Countries, OPEC, and non-OPEC members, in Algiers, Algeria, Sunday, Sept. 23, 2018.

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