Oil prices on Friday are continuing to rise. Brent is currently going for $48.21 (+0.08%). Futures on WTI with November delivery are trading $45.14 (+0.5%).
The price of oil this morning was up due to a fall in the USD’s value. As we approach the afternoon, investors have managed to analyse what was said last night by the Federal Reserve’s head, Janet Yellen, and take what she said about the US base rate into account with regards to oil quotes. There was nothing new in what she said as the market has been ready for an interest rate rise this year for some time. Now we’re focussing on inflation data. If the American September CPI is up, then we could see the base rate hiked in November. The US’ inflation target is set at 2% with the real figure slightly beneath it.
Yesterday Iran announced its intention to start exporting 500,000 barrels of oil to Asia by December. Asian countries really could be ready to acquire such volume. China and South Korea have already spoken about this. Over the course of a year, Iran could bring their export levels back to as they were before the sanctions were put in place. However, some sanctions are still in place and the capital markets are also taking this into account. One thing is for sure, Iran will come back on to the world oil market and the supply of oil will increase and therefore put further pressure on prices.
On Friday we can expect Brent to trade $47.65-48.40. The $48-dollar mark is still holding: no matter what news comes out in the next few days, oil will return back to $48 in any case.