“As Brent hits the psychological level of $80 per barrel traders are questioning whether oil to $100 is a possibility? Fundamentally the price looks well supported here, OPEC are showing they are in no rush to end production cuts, Venezuela’s oil industry is collapsing under its economic and political crisis and US sanctions aimed at Iran’s oil industry are kicking in. Whilst US production is a constraint on the price, right now this is overshadowed by the Iran Venezuela shortfall.
“Could oil go higher? Venezuela’s problems are unlikely to be resolved anytime soon and could be exasperated if the Trump aims sanctions at the troubled country following rigged and unfair elections; also if the US can get China to loosen energy ties with Iran, then regardless of increased US shale production, the price could close in on $100.”
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