Oil holds near four-year high on supply rise agreement
Saudi Arabia and Russia agree to a supply rise without telling Opec, as US crude inventories increase unexpectedly
London — Oil held near four-year highs on Thursday, supported by the imminent loss of Iranian supply through US sanctions, but also tempered by the prospect of a rapid production boost from Saudi Arabia and Russia. Brent crude oil futures were down 16c at $86.13 a barrel by 9.14am GMT, having risen to a late 2014 high of $86.74 the day before. US crude futures were also down 16c, at $76.25. “Prices will probably rise further into overshoot territory. Once we see $90 I would expect decisive supply reaction,” Commerzbank strategist Carsten Fritsch told the Reuters Global Oil Forum. “Major economies won’t let oil prices rise to triple digits and harm economic growth.” Nitin Gadkari, India’s transport minister, said on Thursday that his country faced “economic crisis” due to its huge oil imports, two local TV channels reported. India imports more than 4-million barrels per day (bpd) of oil and is one of the biggest buyers of Iranian crude, along with China, and has been hurt by a slide ...
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