The rise in crude oil prices above $82 a barrel has led to more predictions of $100 a barrel around the end of the year. A supply crunch is to blame, just as winter is coming – the US has reimposed sanctions on Iran and OPEC declined to raise production at the weekend.
The oil market is bracing for a hit to global supplies from the sanctions. Brent remains on course for its fifth consecutive quarterly increase, the longest stretch since early 2007 when a six-quarter run led to a record-high price of $147.50 a barrel.
Several big buyers, such as a number of Indian refiners, have signaled they will wind down purchases of Iranian crude but the impact on global markets is not yet clear.
U.S. officials, including President Donald Trump, are trying to reassure consumers and investors that enough supply will remain in the oil market and have pushed the Organization of the Petroleum Exporting Countries (OPEC) to raise output.
In a Tuesday speech at the United Nations, Trump reiterated calls on OPEC to pump more oil, accused Iran of sowing chaos and promised further sanctions on the country.
The so-called "OPEC+" group, which includes non-OPEC members such as Russia, met over the weekend but decided not to boost output.