Ever since the United States imposed new sanctions on Iran, other oil exporters have been trying to make up for the decline in the international oil supply. Some experts are now predicting a strong trend all the way up to $100 per barrel.
During the recent oil summit in Algeria, the participants failed to agree an oil production hike. Since the American sanctions imposed on Iran collapsed the import of crude oil from this Middle Easter state, this also lowered the supply to the international market of crude oil. Chances are, Russia and Saudi Arabia won't make up for this supply drop, which is basically the major reason why the experts think the prices are going to skyrocket to $100/b in the near future.
During the recent talks, the OPEC+ participants agreed to stick to the production threshold set in June (extra 1 million barrels a day). Still, they somehow failed to distribute the production quotas.
In the meantime, the Iranian Minister of Oil shared his thoughts on the situation with Bloomberg. According to him, Donald Trump decided to nullify the Iranian oil export even without consulting his advisors. He was in a hurry to implement his idea but at the end of the day he probably figured out that it's next to impossible to implement his plan. The minister thinks that Washington is now desperately trying to freeze the export of cure oil from Iran at least for couple of weeks.
Saudi Arabia's oil production capacities are limited.
It's interesting to note that international experts (whose thoughts were apparently ignored by President Trump) share the same opinion that the international market of crude oil is going to see a deficit in the near future. If that's the case, oil prices will inevitably go up, which is something Donald Trump has been resisting so far. The thing is, that the decline in the oil export coming from Iran has resulted in shorter international oil supplies. Given the fact, that Saudi Arabia's oil production capacities are limited, it's not going to make up for the shortage. As for Russia, some experts say that it may strengthen its position of a major player regulating oil prices within the scope of the OPEC+, which used to be the OPEC.
