Oil trades near 4yr peak
Oil prices steadied yesterday, remaining close to four-year highs on worries that global supplies will drop due to Washington’s sanctions on Iran.
“This is the market catching its breath,” said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut. The market steadied after rallying in three consecutive sessions. Still, oil prices drew support from worries that Iranian production will drop sharply after U.S. sanctions go into effect on Nov. 4. Also, global demand has remained strong in the face of trade tensions.
Brent LCOc1 rose 9 cents to $85.07 per barrel by 11:53 a.m. EDT (1553 GMT), a day after reaching a four-year high of $85.45. U.S. West Texas Intermediate (WTI) crude futures CLc1 were flat at $75.30 a barrel, after earlier touching a four-year high of $75.91. HSBC said in its fourth-quarter Global Economics outlook that “our oil analysts believe there is now a growing risk it (crude) could touch $100 per barrel.”
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