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For Nigeria lower budget deficit as oil touches $80 a barrel

For Nigeria lower budget deficit as oil touches $80 a barrel

In other words, there's been little direct impact yet on Iran's oil.

"Demand at the start of the year was supported by cold weather in Europe and the USA, the start-up of new petrochemical capacity in the United States and a solid economic background", the IEA said.

"In its monthly report, the Paris-based IEA cut its forecast for global demand growth in 2018 to 1.4 million barrels per day, from a previous estimate of 1.5 million bpd".

Goldman Sachs, though, said even with a slowdown in demand and soaring USA output, global oil markets would remain tight.

The Organization of the Petroleum Exporting Countries reduced its forecast for global oil production in its most recent report.

Brent crude has not been at 80 dollars since November 2014.

"A couple of years ago there was a view that USA shale was Superman and that, basically, we wouldn't have to go back to the traditional producers and say, 'Put more barrels on in the event of a shortage.' But, again, now we have these infrastructure constraints and pipelines that are reaching capacity, the Trump administration has to appeal to traditional allies in terms of managing the market". Angolan production in the first quarter of this year averaged 1.57 million bpd down, from 1.64 million bpd in the fourth quarter of 2017. This domestic production increase will have a significant moderating influence on future oil prices. Crude oil production in March was around 3.76 million bpd, flat compared with the average levels in January and February. Analyst see it as more likely for shippers to choose the latter, heightening demand for middle distillate products like diesel and marine gasoil, which should trigger a need for more crude. As oil approaches $80 a barrel, demand may suffer, the IEA said.

After the plans for the United States to pull out of the Iran nuclear deal became known, oil prices surged over the uncertainty of what would happen to Iran's oil industry if the U.S. reimposed sanctions, limiting Iran's production.

Still, "we don't expect China to reduce its imports of crude from Iran given their long-term signed contracts and the ability to pay in yuan", said Abhishek Deshpande, the head of oil market research & strategy at J. P. Morgan.

Will OPEC and its non-OPEC partners continue to cut production with lower Iranian and Venezuelan volumes?

An agreement between Saudi-led OPEC and Russian Federation on cutting oil production has helped push the price of oil from below $30 in 2016 to hit $80 on Thursday - the highest in almost four years.

The most unlikely source of reason in the analytical debate over crude on Wednesday was Iran, whose oil minister Bijan Zanganeh told media that prices at $60 to $65 was "logical"; a source explained this mindset by pointing out, "When oil prices rise due to geopolitical concern and not due to demand and supply and fundamentals, it can not be reasonable".

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