The oil commodity trading market is balanced with regards to supply and demand, said Mohammed al-Sada, Qatar’s Energy Minister, on October 06, 2018.
He said that there are advances in the oil market. This indicated that the increase in supply and the rise in global demand. These considerations regarding the oil market would be considered at the subsequent meeting of OPEC (the Organization of the Petroleum Exporting Countries), stated the Energy Minister.
Oil prices have been increasing because of the start of US sanctions against Iran’s crude oil exports in November. Brent crude is trading at about 85 Dollars per barrel, as compared to 65 Dollars per barrel at the start of the year.
Brent crude oil witnessed its highest since November 2014 on October 01, 2018. This increase in oil prices has been supported by supply issues before US sanctions against Iran’s crude oil exports comes into effect.
Olivier Jakob, the Petromatrix strategist, said that there is nothing appropriate now and it gives a strong motivation to be a powerful seller of the oil commodity trading market.
Many major oil buyers in China and India have already signaled that they will reduce their imports of Iranian oil.
US President Donald Trump talked to Saudi King Salman on September 29, 2018, regarding the ways to maintain an adequate supply of crude oil, according to the Economic Times.
However, the Brent crude oil prices fell for a third day by over 1 percent on October 08, 2018, owing to US’s decision to grant waivers on Iran’s crude oil exports sanctions. Saudi Arabia’s assurance to replace any possible shortage of crude oil from Iran, also had an impact on the drop in oil prices, as reported on Bloomberg.
Qatar’s Energy Minister stated that the oil commodity trading market is balanced and the recent increase in the crude oil prices is due to “Geopolitical changes,” according to a state-run Qatar News Agency, as reported on CNBC.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]