Oil sets sight on $100

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Oil sets sight on $100

Saudi energy minister Khalid al-Falih said the oil market is balanced and that its partners have increased production in response to rising prices.

Higher gasoline prices for US consumers could create a political headache for Republican Trump before mid-term congressional elections in November.

Kazempour said that he viewed Washington's increased political pressure on Iran and OPEC "something which can not be accepted".

The OPEC cartel in December 2016 concluded an agreement with non-member states - including Russian Federation - to reduce output in order to arrest sliding prices.

"It's a time of great uncertainty in oil markets, from Iranian output post-sanctions to the global economy and demand", said Jason Bordoff, director of the Center on Global Energy Policy at Columbia University in NY and a former Obama administration oil official. J.P. Morgan says the loss could be a large as 1.5 million bpd.

Bank of America's main scenario is for oil prices next year of around US$80 a barrel, according to the note.

Last year, Opec and other oil-producing nations including Russian Federation said they would extend a deal, first agreed in 2016, to cut production to help support oil prices after they fell below $50 a barrel.

The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) is being convened in Algiers with the oil and energy minister of OPEC and non-OPEC countries including Russian Federation. He was returning to a playbook that won him a significant victory in June as OPEC and its allies agreed to roll back production cuts and pump an extra 1 million barrels a day.

Trump has repeatedly called for a hike in production by countries other than Iran to reduce oil prices.

While US oil production is near a record high of 11 million bpd, subdued US drilling points toward a slowdown in output.

The price rise is notably caused by a recent drop in Iran's supply because of USA sanctions.

"If there is a fall not only from Iran, but anybody else, it is the responsibility of OPEC and non-OPEC to balance the market", Hossein Kazempour Ardebili, who represents Iran on OPEC's board of governors, told reporters.

Although he refrained from specifying how that could be done, Saudi Arabia is the only oil producer with significant spare capacity. The biggest source of new global supply, USA shale, is also experiencing growing pains as pipeline bottlenecks and workforce issues may hamper growth, he said.

People look at flags ahead of the OPEC Ministerial Monitoring Committee in Algiers, Algeria September 22, 2018.

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