CNBC: OPEC 'powerless to prevent' oil prices jumping toward $100 a barrel this year
* China initially rejected a U.S. request to choke off the flow of petrodollars to the Islamic republic but, amid intense pressure from the Trump administration, the Asian giant is now reportedly taking steps to comply.
* OPEC kingpin Saudi Arabia is thought to be unable to fully offset global supply disruptions over the coming months.
* And "this essentially leaves the world's only swing producer powerless to prevent a supply shock and subsequent price spike in the final quarter of this year," Stephen Brennock, oil analyst at PVM Oil Associates, said in a research note published Monday.
OPEC kingpin Saudi Arabia is ill-equipped to prevent a supply shock in the energy market, analysts told CNBC on Monday, as oil traders prepare for the possibility of $100 a barrel before year-end.
"Nobody wants to get caught short, full in the knowledge that more Iranian barrels are poised to be removed from the market," Stephen Brennock, oil analyst at PVM Oil Associates, said in a research note published Monday.
Late last month, President Donald Trump urged OPEC producers to ratchet up production levels to prevent further price rises ahead of the mid-term elections in early November.
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WNU Editor: We know that the White House is concerned .... Trump calls Saudi's King to discuss oil supplies (Reuters). More here .... King Salman discusses regional developments, oil market with Trump during phone call (Arab News). With Iran oil sanctions about to be implemented, the big question that remains unanswered is this one .... How Much Spare Capacity Does Saudi Arabia Really Have? (OilPrice.com).
