Crude Advances as Saudis Indicate Oil Over $80 Is Just Fine - Bloomberg

Crude Advances as Saudis Indicate Oil Over $80 Is Just Fine - Bloomberg:

Crude popped higher amid indications that Saudi Arabia is just fine with oil prices pushing past $80 a barrel given the looming supply losses from Iran.

Futures in New York climbed as much as 2.2 percent on Tuesday. The world’s biggest crude exporter is said to be comfortable with Brent prices rising above $80 a barrel as markets adjust to the loss of Iranian supply due to U.S.-imposed sanctions, with oil exports from the nation plunging about 35 percent since April. In the U.S., crude inventories are seen declining for a fifth straight week.

“The comments that the Saudis were happy with higher prices combined with what looks like dropping Iranian oil exports is making people think we’re going into another bull period,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts.