By Srinivas Chowdary Sunkara // petrobazaar // 28th Sep, 2018.
Brent futures settled up $0.38 to $81.72 and U.S crude futures closed up by 55 cents at $72.12 a barrel on Thursday. WTI traded at a discount of $9.6 to Brent Yesterday. Oil prices are responding to headlines mostly fretting over prospective supply shortages in place of Iran barrels during post sanctions period. Both the crude markers are trading in green zone and set to close with weekly gains. Brent prices forwarded around 5.5 pct during the month and triggered towards fifth consecutive quarterly rise to four years high after 2014.
At the end of last week, OPEC + producers ruled out for further supply increases. Higher oil prices are not good for Republicans during the mid term elections in Nov.. U.S admin is on job to explore the ways and means to fill the expected shortages. 300Kbpd can be offset, if Iraq allows it to flow from the Kurdistan region in the north and another 300Kbpd can be reached to market from Neutral zone if Saudi and Kuwait come into agreement said U.S department of energy. I have a question, Instead of depending on producer's cartel, Why don't U.S consider the piled up stocks in U.S petroleum strategic reserves in case of emergency.
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