Oil futures on Tuesday extended a recent uptrend that has taken the global benchmark to around a four-year high and put its U.S. counterpart on track for its longest streak of advances since the end of July, supported by expectations for coming slack in Iranian output.
rose 57 cents, or 0.7%, at $81.10 a barrel on the ICE Futures Europe exchange, after marking the highest settlement since Nov. 12, 2014 a day ago, according to Dow Jones Market Data.
November West Texas crude
added 33 cents, or 0.5%, at $72.41 a barrel on the New York Mercantile Exchange, following the highest settlement for a front-month contract since July 10. A close in positive territory will mark the third consecutive rise for U.S. benchmark oil, which is enough to match the longest such streak since the period ended July 26.
Oil prices have been mostly rallying, boosted in part by President Donald Trump’s decision to pull out of a 2015 Iran nuclear accord and renew sanctions on the country, which are aimed at sharply curtailing the major producer’s exports.
During an interview on Monday with NBC News, Iranian President Hassan Rouhani, who is in New York for the annual U.N. General Assembly gathering, said “the United States is not capable of bringing our oil exports to zero.”
“It’s a threat that is empty of credibility. Perhaps on this path, we will sustain certain pressures but certainly the United States will not reach its objective,” he said.
Rouhani also said he had no plans to meet President Trump during his visit to New York, where the president also was as a part of the U.N. meetings, where he will deliver a speech to the assembly at 10 a.m. Eastern.
Iranian exports have fallen by around 500,000 barrels a day between April and August, according to the International Energy Agency, with specific U.S. sanctions targeting oil set to take effect Nov. 4.
Rouhani’s interview comes after a committee made up of some members of the Organization of the Petroleum Exporting Countries and nonmember crude producers, known as the Joint OPEC-non-OPEC Ministerial Monitoring Committee, over the weekend in Algiers delivered no formal plan to boost output to offset an estimated 2 million barrels a day of oil that estimated to likely be lost due to Iranian sanctions.
Energy ministers in Algiers were unable to strike an accord on how best to allocate any increases in production to help address Iranian shortfalls, defying calls by Trump who tweeted that OPEC “must get prices down now.”
OPEC and non-OPEC producers, including Russia, agreed in late 2016 began capping global production in an effort to rein in sop up a supply glut that had weighed delivered a seismic blow to crude prices, chopping them down from peak 2014 levels.