Traders see Crude Oil prices at USD$100/bbl by year-end as OPEC hints that there will be no production increase to fill supply gap
Sep 24, 2018
- WTI Crude Oil prices climbed to USD$72.24/barrel today, up 2.06%, its highest levels since November 2014, after OPEC and its allies signaled less urgency to increase crude oil output.
- President Trump announced sanctions in May on Iranian oil exports after withdrawing from a nuclear agreement with Iran, forcing Iran to effectively lower its crude oil production.
- President Trump has also been putting pressure on OPEC to increase its crude oil output to meet global demand and cool rising crude oil prices, a request OPEC made clear this weekend it would do little to heed.
- These two factors have combined to lead analysts and major oil trading houses to predict the return of USD$100/bbl crude oil prices by year-end for the first time since mid 2014.
- Bullish crude oil price sentiment has caused a spike in volume of investors entering call option crontracts, with a total of ~50k Brent calls being traded by 1:20PM (London time) Monday compared to just ~16k puts.
2-Year WTI Crude Oil Price per Barrel