Oil prices could top $120 before year-end

[endicom]

Market Watch
Myra P. Saefong
July29, 2018

Oil prices have lost nearly 7% this month, but investors should be aware that a spike from last week’s levels to more than $120 is possible this year.

“This is a tight market. Supply and demand are close,” says Matt Badiali, senior research analyst at Banyan Hill. Global oil demand is expected to average 99.1 million barrels a day this year, but global oil supply stood at 98.8 million barrels a day in June, according to the International Energy Agency.

“We have supply constraints, thanks to Venezuela becoming a failed state. We have potential supply disruption with the Iran sanctions, and we have demand increasing with global growth,” Badiali says. “Disappointment that [the Organization of the Petroleum Exporting Countries] didn’t just open the spigots” on production also supports a higher oil price.

More... https://www.marketwatch.com/story/oil-prices-could-top-120-before-year-end-2018-07-20?mod=newsviewer_click

[Wingnut]

I thought the Saudies agree to increase production to offset losing Iranian oil when the sanctions against them kick in.  You guys know more about thoserr markets but this sounds like chicken little scare talk.

[endicom]

I thought the Saudies agree to increase production to offset losing Iranian oil when the sanctions against them kick in.  You guys know more about thoserr markets but this sounds like chicken little scare talk.

It says that the Saudis are near their production capacity.

There's nothing we can do to control increasing worldwide demand. We can reduce barriers to domestic production.

[thackney]

It says that the Saudis are near their production capacity....

Others have a different opinion.



What drives crude oil prices: Supply OPEC
https://www.eia.gov/finance/markets/crudeoil/supply-opec.php

[endicom]

Others have a different opinion.



What drives crude oil prices: Supply OPEC
https://www.eia.gov/finance/markets/crudeoil/supply-opec.php

But that's OPEC and not just the Saudis. Some OPEC nations may be having problems.

[thackney]

But that's OPEC and not just the Saudis. Some OPEC nations may be having problems.

 Saudi Arabia, the largest oil producer within OPEC and the world's largest oil exporter, historically has had the greatest spare capacity. Saudi Arabia has usually kept more than 1.5 - 2 million barrels per day of spare capacity on hand for market management.

[IsailedawayfromFR]

But that's OPEC and not just the Saudis. Some OPEC nations may be having problems.

You mean like Venezuela and Libya?