Brent oil jumps to four-year high near $81

Crude prices are spiking

Commodity traders Trafigura and Mercuria said they expected Brent crude to climb above $90 by Christmas and to pass $100 early in 2019.

Japanese refiner Cosmo Oil has replaced its Iranian crude oil imports with supplies from other Middle Eastern producers ahead of US sanctions on Iran in November, top company executives said.

Iranian oil minister Bijan Zanganeh described Mr Trump's tweet as "the biggest insult to Washington's allies in the Middle East".

"Japan will not import any crude from Iran in November because of the US sanctions", Cosmo Oil President Shunichi Tanaka told Reuters ahead of the Asia Pacific Petroleum Conference (APPEC).

The U.S., which isn't an OPEC member and has in recent years seen a renewed boom in shale oil, will continue to grow as a crude producer, peaking in the late 2020s.

Saudi Energy Minister Khalid al-Falih said on Sunday- before the start of an OPEC and non-OPEC energy ministers' meeting in Algeria- that the signatory states of the oil deal will try to reach a 100 percent commitment within two or three months.

Falih said attending ministers "showed us that they have spare capacity that they are ready to deploy if there is demand for it, if it is required by any shortfall".

Brent crude futures were at $81.39 per barrel at 0042 GMT, up by 19 cents, or 0.2 percent from their last close.

More news: India stamps out rare Pakistan meeting over 'brutal killings'

In its annual World Oil Outlook, the Organisation of Petroleum Exporting Countries forecast world supply of all hydrocarbons (primarily oil and liquified natural gas) would rise from a current 98.4 million barrels per day (mbd) to 104.5 million by 2023, and 111.9 million by 2040.

But Falih - attending a meeting of oil producers in Algiers - left the way open to a future production hike, as supplies tighten due to the USA imposing sanctions on Iranian oil from November 2018.

Notably, the bank increased its estimate of supply losses from Iran 1 million barrels per day (mb/d), up from 500,000 bpd previously. Blanch noted that Iranian crude exports have already fallen by 600,000 barrels a day in August compared to April levels, significantly exceeding the bank's initial expectations. Unless an agreement is reached to fill this supply gap, and US President Trump is vocal in calling for it to be filled, prices will continue to push higher with little in the way of resistance on the charts.

Mohammad Barkindo, OPEC secretary general, said in Madrid on Tuesday OPEC and its partners should cooperate to ensure they do not "fall from one crisis to another".

"Saudi Arabia has room to produce more oil to cover".

Meanwhile, U.S. crude inventories are forecast to have fallen for a sixth week, according to a Bloomberg survey of analysts before Energy Information Administration data due Wednesday.

The OPEC governor, Hossein Kazempour Ardebili of Iran, said in comments to Reuters that Saudi Arabia and Russian Federation were unable and unwilling to add more production at short notice.

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