Hundreds of oil industry leaders walked away from the Asia Pacific Petroleum Conference in Singapore last week assured crude’s bull run is here to stay for now, but many are now wondering if a return to $100 a barrel could happen even sooner than the market anticipated just a few months ago. The view from APPEC delegates were unanimous: A cocktail of production woes, US sanctions on Iran, production constraints and an inventory squeeze may be enough to push oil closer to the three-figure mark last seen four years ago. ICE Brent crude futures hit $100/b for the first time in Q1 2008 and then went on to climb to a record near $147/b in the same year in July. The last time oil was above $100/b was in September 2014. Mercuria co-founder and president Daniel Jaeggi’s remarks that the market may have to brace for substantial volatility in the fourth quarter this year set the tone for the debate that found support from other speakers and industry thought leaders at the S&P Global Platts event. “I think we may well be on the verge of some very significant volatility here in Q4 2018 because depending on the severity and the duration… continue reading
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Source: CTRM Center