Reuters reported Brent crude oil price rose to its highest since November 2014 yesterday, ahead of the USA sanctions against Iran, the third-largest producer in Opec, which kick in next month. US West Texas Intermediate (WTI) crude futures were flat at $75.20 a barrel, having hit a four-year high of $75.91 earlier in the session. WTI has risen around 18 percent since mid-August.
Brent rose 9 cents to $85.07 per barrel by 11:53 a.m. EDT, a day after reaching a four-year high of $85.45.
Futures were little changed in NY after closing Monday at the highest since November 2014.
Donald Trump spoke on the phone Saturday with King Salman bin Abdulaziz of Saudi Arabia, days after the US president's latest criticism of OPEC.
Bijan Zanganeh said in an interview on state television that the Organization of the Petroleum Exporting Countries lacked the capacity to produce more oil to make up for the drop in Iranian sales. In May, Iran sold 2.71 million bpd overseas, almost three percent of daily global oil consumption.
Head of commodity research at a Swiss bank Norbert Ruecker stated that oil prices continue to go up, supported by the impending Iran embargo and related supply concerns.
Trump has been increasing pressure on OPEC, saying it's pushing oil prices too high.
Oil in London extended gains after the longest quarterly rally in a decade as a slowdown in American drilling added to supply risks while the USA and Saudi Arabia discussed market stability.
Saudi Arabia, the world's biggest oil exporter and OPEC's de-facto leader, is expected to raise output to the market to offset cuts in Iranian production. "If the market senses that Saudi Arabia capacity is tapped out at 10.5 million bpd. oil prices will rocket higher with the flashy $100 per barrel price tag indeed a reasonable sounding target", Innes said.
High oil prices make Americans question the Trump administration's work - analyst to RT Surging crude prices are causing rises in U.S. gasoline prices.
For now, soaring crude prices and weak emerging market currencies, including India's rupee and Indonesia's rupiah, may erode economic growth.