Why $100 Oil May Not be Far Off

02:19 09/24/2018

The last time we saw $100 oil was in 2014. Now, just four years later, it may not be far off. In fact, major oil traders say we could see it again, as markets brace for the loss of Iranian supplies. All on the heels of U.S. sanctions. Mercuria Energy Group co-founder Daniel Jaeggi for example has said prices could spike well over $100 because the market does not have much spare capacity to replace more than two million barrels a day that will be lost. “We’re on the verge of some significant volatility in Q4 2018 because depending on the severity and duration of the Iranian sanctions, the market simply does not have an adequate supply response for a 2 million barrel a day disappearance of oil from the markets,” Jaeggi said. “In my view, that makes it conceivable to see a price spike north of $100 a barrel,” he says.

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