According to Mining News Pro -The largest European bank, the world`s newest financial institution, revises its valuation of oil prices due to growing concerns about the impact of US sanctions on Iran.
In a research note, the bank wrote: "Although we do not explicitly anticipate Brent oil to rise to $ 100 a barrel, we see the real risks of such an event. The fact that much higher supply is needed by countries like Saudi Arabia, while the level of floating production capacity is low, will make the global system more vulnerable to further supply disruptions.
For the first time in the last 15 months, the bank raised its Brent oil futures forecast for $ 80 a barrel in 2019, compared to $ 70 a barrel. The introduction of stricter standards for ship fuel by the IMO in 2020 and boycotting Iran`s oil exports are among the main concerns of the bank over market disruption.
The latest OPEC report, based on secondary sources, showed Iran`s oil production peaked at 3.60 million barrels per day last month, while Saudi production was 10.5 million barrels a day.
The revision of the oil price prospects from the bank coincided with similar action by the US Energy Information Administration, which raised Brent`s average Brent oil price to $ 73.68 a barrel in 2019.
According to S & P Global Plc, oil markets will be limited in the fourth quarter of this year and there is a political risk of supplying oil due to concern about Venezuelan production decline and production disturbance in Iraq and Libya.