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Brent Oil Climbs Above $84, WTI Crude Joins Rally

October 1, 2018 at 16:48 by Vladimir Vyun

Today, prices for Brent crude oil climbed to levels last seen in 2014, and West Texas Intermediate crude also joined the rally, reaching the highest level in almost four years. Traders were concerned that the US sanctions against Iran will decrease supply on the oil market, and that led to the rally of prices.

According to Reuters estimates, the Organization of Petroleum Exporting Countries increased its oil production by 90,000 barrels per day to 32.85 million bpd in September. But those OPEC members bound by the supply-cut agreement actually reduced their output by 70,000 bpd due to lower production in Iran and Venezuela.

Market analysts argued that the news that Canada was invited to the trade agreement with the United States and Mexico after all boosted prices as well. The news reduced trade war fears, and that was positive for oil prices.

Futures for delivery of WTI crude oil in November climbed 1.94% to $74.67 per barrel as of 16:34 GMT on NYMEX today. December contract for Brent crude jumped 1.96% to $84.35 per barrel on ICE.

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