The outlook for tightening supplies prompted top trading houses to predict the return of higher oil prices last seen in 2014. Oil surged on prospects of a supply crunch after the U.S. ruled out the release of emergency crude reserves, adding to concerns over potential losses in Iranian supplies. The outlook for tightening supplies prompted top trading houses to predict the return of higher oil prices last seen in 2014, and banks including Bank of America Corp. and JPMorgan Chase & Co. lifted their forecasts. The U.S. government isn’t considering a release from the country’s emergency oil stockpiles to prevent prices from surging when American sanctions on Iranian crude are implemented in early November. That helped raise speculation the president may try to temper prices by using emergency reserves before the mid-term elections in November.

Source: Mint September 27, 2018 06:22 UTC