The crude rally is likely to continue this year as OPEC countries are losing their exports, after US sanctions against the major producers like Iran and Venezuela.
These factors could result in a surge in oil prices to $100 per barrel by year-end. The spike in prices comes to the chagrin of the White House, which has triggered the booming oil prices.
Iran is not going to give up its exports so easily, according to Eldiyar Muratov, president at Singapore Castle Family Office. Russia has already reached the peak of production of 11.35 million barrels, the same amount the country produced before the OPEC+deal.
The Saudis added 300,000 barrels and will be able to add more, as soon as the output ceiling is raised. Iran made it clear that this time it is determined to defend itself. The latest supply negotiations with India are direct evidence of this
However, nobody expects a dramatic fall in Iranian exports. “Only the USA is withdrawing from the deal. Asia and Europe are determined to resist the pressure from Washington. Supplies from Iran will be reduced by a maximum of 1.5 million barrels.
RT.com / ABC Flash Point Political News 2018.