The price of the black liquid is bullish today as a result of mounting supply tightness concerns amid disruptions to Russian exports; the potential for major producers to cut output, and the partial shutdown of a U.S. refinery.
The global benchmark, Brent crude is up 0.4% in the London trading session today, currently trading $101.67 a barrel. This is the first time Brent is trading above $100 since it fell below this price range 15 days ago. The U.S. Benchmark, the West Texas Intermediate (WTI) crude is bullish by 0.3%, currently trading $95.21 a barrel.
Both crude oil benchmark contracts touched three-week highs today after the Saudi energy minister flagged the possibility that the Organization of the Petroleum Exporting Countries and its allies (OPEC+), will cut production to support prices.
Discussions on an agreement on Iran’s nuclear programme remain stalled, calling into question any resumption of its exports. Talks between the European Union, the United States and Iran to revive the 2015 nuclear deal are continuing; with Iran saying it had received a response from the United States to the EU’s “final” text to resurrect the agreement.