Brent oil prices increased due to strong demand, impending sanctions on Iran, a drop in Venezuelan production and supply disruptions in Nigeria.

Brent crude futures LCOc1 increased 39 cents to reach $79.69 a barrel, while US West Texas Intermediate crude futures grew 14 cents to reach $71.63 a barrel, reported Reuters.

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Barclays expects average prices of Brent to be $70 per barrel this year and a drop of $5 a barrel next year, up from its previous estimates of $63 and $60, respectively.

The bank was quoted by the news agency as saying: “Since last month, Venezuela’s production decline, Trump’s Iran sanctions decision, a new disruption in Nigeria, and anecdotal evidence from a new round of producer earnings require a price forecast revision.”

Growing prices have increased concerns among huge oil-consuming countries such as India.

“Growing prices have increased concerns among huge oil-consuming countries such as India.”

Saudi Arabia allayed the fears stating that the global market will be sufficiently supplied with oil.

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In addition to the OPEC production cuts initiated last year, a drop in output from Venezuela and looming sanction against Iran have increased Brent prices by 20% since the beginning of this year.

According to investment bank Jefferies, sanctions against Iran could wipe out more than one million barrels per day (bpd) from the global market.

Barclays also indicated that production from Venezuela could drop below one million barrels per day. In April, the country produced 1.5 million barrels per day.

Furthermore, Shell declared force majeure on loadings of Bonny Light crude grade in Nigeria. This grade was expected to run at nearly 200,000bpd in June. Furthermore, Forcados stream is also witnessing delays as a result of a pipeline leak.