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UPDATE 1-World's biggest traders see oil at $65-$100 a barrel next year

Devdiscourse News Desk
Updated: 10-10-2018 19:24 IST

The world's biggest trading houses said on Wednesday they saw oil prices not falling below $65 per barrel and possibly breaking above $100 next year due to U.S. sanctions on Iran.

Oil has rallied this year on expectations the sanctions will test the production ability of the Organization of the Petroleum Exporting Countries and others as Iranian crude exports decline.

Brent crude last week reached $86.74 a barrel, the highest since 2014.

But in 2019, forecasters such as the International Energy Agency say emerging-market crises and trade disputes could dent global demand while rising non-OPEC production adds to supply.

Jeremy Weir, chief executive of Trafigura, said at an oil conference in London that he would not be surprised to see oil trade at more than $100 per barrel next year.

Alex Beard, chief executive for oil and gas at Glencore, said at the same event that he sees the mid-term oil price at $85-90.

The chief executive of Gunvor, Torbjorn Tornqvist, said he saw lower prices next year at $70-$75, citing a slowdown in demand growth and a well-supplied market.

(With inputs from agencies.)