Iran Crude Prices Surge Ahead of OPEC Meeting
Iran's crude prices have surged ahead of an upcoming meeting between OPEC and non-OPEC members in St. Petersburg, Russia. According to IRNA, Iran Heavy settled at $46.12 a barrel, up $1.56, while light crude reached $46.90 per barrel, up $1.12. The price increase mirrors bullish sentiments about the prospect of easing global inventories.
The Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers last week discussed extending a deal to cut output by 1.8 million barrels per day beyond March 2018 if necessary. Saudi Energy Minister Khalid al-Falih said his country would limit its crude exports to 6.6 million bpd in August, almost 1 million bpd below levels of a year ago.
Brent crude futures rose $1.01, or 2%, to reach $52.50 a barrel, posting the strongest weekly percentage gains this year. However, analysts believe that any bump in prices will embolden non-OPEC producers to raise output and distort the market.