Geopolitical disruption risks without oil spare capacities
Last week oil prices spiked to an all time high in four years since 2014. The international benchmark ICE Brent for December settled at US$86.29 per barrel Wednesday October 3, up US$1.49 per barrel from Tuesday, October 2. The West Texas Intermediate, WTI crude the U.S. benchmark oil futures, rose by US$1.18 per barrel to settle at US$76.41 a barrel on the New York Mercantile Exchange, NYMEX. With rising demand and no spare capacity to be deployed to boost global supply the bullish prediction of oil prices hitting the US$100 mark appear imminent. Many believe that another spike may cripple the industry. The oil market looks up to Saudi Arabia, its allies in the Organization of the Petroleum Exporting Countries, OPEC and Russia would do to calm market supply worries that have contributed to a rise in oil prices above US$86 a barrel last week.