Oil rises above $ 85 a barrel near a 4-year high

05:16 PM

Wednesday, 03 October 2018

CAIRO –

Oil settled near a four-year high on Wednesday, easing from a peak for the session as Saudi Arabia, the world's top oil exporter, said it had increased production after Reuters reported that Russia had agreed with the kingdom to pump more.

Saudi Energy Minister Khalid al-Faleh said the kingdom had increased production to 10.7 million bpd in October and would pump more in November.

The highest level for Saudi production was 10.72 million barrels per day in November 2016.

But crude found some support from expectations that the energy of other major producers would be drained by US sanctions on Iran, which runs from November.

"The Saudi is still very hesitant, the market wants something bolder," said Olivier Jacob, an analyst at Petromatrix. "That's why the market does not react very much to headlines."

At 1236 GMT, the benchmark Brent crude was up 20 cents at $ 85 a barrel. The price hit $ 85.45 on Monday, its highest level since November 2014. US crude rose 15 cents to $ 75.38.

Oil prices are on the rise as buyers begin to avoid Iran ahead of the US sanctions on November 4.

The fall in Iranian exports is offset by the impact of the June agreement between the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia on boosting production.

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