Russian Energy Minister Alexander Novak has accused the U.S. of destabilising the global oil market, urging for wider cooperation between OPEC and non-OPEC producers to reach long-term stability. Brent crude may spike to above that level in the fourth quarter as the market doesn't have enough excess capacity to replace Iranian barrels, Mercuria co-founder Daniel Jaeggi said.
Oil prices have hit a four-year high after Opec ruled out a production increase and analysts predicted it would continue to rise towards $100 per barrel.
"The market's still being driven by concerns about Iranian and Venezuelan supply", said Gene McGillian, director of market research at Tradition Energy in Stamford.
The group broadly agrees that oil prices above $80 a barrel could hurt demand by impairing growth.
Global benchmark Brent reached $81.39/Bbl, its strongest level since November 21, 2014.
A source familiar with OPEC discussions told Reuters on Friday that OPEC and other producers have been discussing the possibility of raising output by 500,000bpd.
Representatives from member nations of the Organization of the Petroleum Exporting Countries, and non-OPEC countries such as Russian Federation, gathered in Algeria on Sunday.More news: Ryder Cup buzzing after Tiger Woods' victory
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According to the WSJ, Saudi Arabia, the world's top oil exporter has increased production to around 10.4 million barrels of crude per-day over the past two months.
Meanwhile, in the United States, the world's biggest oil user, an industry report on Tuesday showed crude stockpiles unexpectedly climbed last week.
"It is now increasingly evident, that in the face of producers reluctant to raise output, the market will be confronted with supply gaps in the next three-six months that it will need to resolve through higher oil prices", BNP Paribas oil strategist Harry Tchilinguirian told Reuters Global Oil Forum.
Futures in London rose as much as 1.7 per cent. OPEC and its partners gave a tepid response to President Donald Trump's demand that rapid action be taken to reduce prices, saying they would boost output only if customers wanted more cargoes.
Oil at US$100 may not be sustainable in the longer-term because demand may be threatened by the U.S.
When asked about Trump's repeated accusation (most of them delivered via Twitter) that OPEC was pushing crude prices higher, al Falih replied, "That is of course not true; we have been looking at more important aspects, which is adequacy of supply".
For consumers, that could mean higher gas prices on the way, but it's good news for Canadian oil producers and helped boost stock prices in Toronto today.
Those fears have sent crude oil prices higher, with commodity traders Trafigura and Mercuria predicting prices could rise to more than $100 a barrel by early next year.