Oil could hit $100 a barrel in 2019: Bank of America

WTI Crude Oil

"If you accept the fact that after Tuesday's decision the general mantra was that the oil market will stay volatile, then here we are. price movement right now is pretty unpredictable", said PVM Oil Associates strategist Tamas Varga.

S&P Global Platts associate editorial director, Mriganka Jaipuriyar, said that as historical allies of the US, Japan and South Korea are expected to cut Iranian crude imports, while China and India are either less likely to adhere to the sanctions or monitoring the situation before firming up their plans.

Iran ramped up its oil production by 1 million barrels per day after sanctions were lifted in early 2016.

Although the oil market is unlikely to be immediately disrupted by this long-expected move, a number of dynamic reconfigurations to oil flows - and indeed, to the balance of relations and power in the market - may follow over coming months and years.

Oil jumps to a fresh three and a half year high as tensions in the Middle East continue to rise. Crude topped $70 a barrel this week for the first time in almost four years. Energy ETFs, which either track crude oil prices themselves or stocks of companies in the energy industry, are among the best-performing ETFs this year.

Oil prices surged following President Trump's withdrawal from the Iran nuclear deal.

Gasoline prices in Fresno already increased beyond $4 per gallon this week at some places in town. The typical family will spend about $200 more this summer driving season, according to the Oil Price Information Service.

Saudi Arabia, on the other hand, could. Do you think this will be a long-term trend or will the market stabilize soon?

Officials are considering whether a drop in Iranian exports and a decline in supply from another Opec member, Venezuela, demands adjusting the deal that runs to the end of 2018.

The two most closely watched crude price benchmarks, Brent and WTI, rose just over 12 hours after President Trump's announcement. Heightened geopolitical fears in the Middle East often raise prices.

"Overall, Iran's production could be significantly curtailed if the Iran deal collapses, but not as much as it was with previous sanctions", it said. It's not clear when an attack could come, nor what form it could take.

Barclays does not see a significant impact on the oil market either.

Saudi Arabia said it would work with other producers to lessen the impact of any shortage in oil supplies.

That is up 27 percent since mid-2016 and means that USA output is creeping ever closer to that of top producer Russian Federation, which pumps about 11 million bpd.

The International Atomic Energy Agency said Iran had been honouring its commitments under the deal.

The accord trades billions in sanctions relief in exchange for commitments from Iran to get rid of its enriched uranium stockpiles and decommission the vast majority of equipment which could be used to make more.

In addition, current trade tensions between China and the United States mean that Beijing is unlikely to support USA action against Iran.

Iran re-emerged as a major oil exporter in 2016 after worldwide sanctions against it were lifted in return for curbs on its nuclear program. That's the longest rising streak in a month.

That's still a sizable amount of oil, especially considering the strong demand around the world.

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