Oil prices rise, and Barclays sharply revises its forecasts
Short-term supplies are under attack on several fronts, and the concern about a glut is fading from the market, with Barclays raising its forecast by more than a third
London — Oil prices rose on Tuesday, with US crude breaking through $70 a barrel, after the evacuation of two Gulf of Mexico oil platforms in preparation for a hurricane. US light crude traded at $70.60 a barrel by 7.45am GMT, up 80c from its close on August 31. US markets were closed on Monday for Labor Day. Brent crude was at $78.50, up 35c from Monday’s close. Anadarko Petroleum said on Monday it had evacuated and shut production at two oil platforms in the Gulf of Mexico ahead of the approach of Gordon, which is expected to come ashore as a hurricane. Global oil markets have tightened over the past month, pushing Brent prices up by more than 10% since the middle of August. Investors anticipate less supply from Iran as US sanctions on Tehran begin to bite. "With ship-tracking data now pointing at a reduction in Iranian exports, renewed strife in Libya, and Venezuelan export availability hobbled by an accident at the key Jose terminal, the list of bullish headlines is getting long...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.