OPEC puts Iran's September oil output at 3.447m bpd

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Torbjorn Tornqvist, CEO of Gunvor, and Weir disagreed with Taylor's price outlook, stating that crude futures could reach $100 or higher either by year end or next year; meanwhile, Alex Beard, chief executive for oil and gas at Glencore, predicted oil would reach $85-$90 per barrel.

Oil stocks took a beating Thursday after OPEC said its production rose in September, easing concerns about a drop-off in Iranian barrels as USA sanctions loom.

The Saudis are right when they say that they've got enough oil to supply everybody who wants it, so what we have in the market is a little bit more of a "fear factor", Taylor said.

Several of the world's biggest trading houses expect USA sanctions on Iran to keep oil prices high, with crude staying above $65 and possibly breaking above $100 in the medium term.

"The market has been reacting to perceptions of a possible supply shortage", OPEC Secretary-General Mohammad Barkindo said Thursday on a conference in London according to Reuters.

Iran's crude exports fell further in the first week of October, according to tanker data and an industry source, taking a major hit from US sanctions and throwing a challenge to other OPEC oil producers as they seek to cover the shortfall.

The chief executive of Gunvor, Torbjorn Tornqvist, said he saw lower prices next year at $70-$75, citing a slowdown in demand growth and a well-supplied market. The International Energy Agency has warned surging prices could hit consumption in emerging economies which are already reeling from depreciating currencies.

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The U.S. Energy Information Administration (EIA) on Wednesday forecast that U.S. crude oil production will average 10.7 million barrels per day in 2018, up from 9.4 million barrels per day in 2017, and will average 11.8 million barrels per day in 2019.

"I'm pretty bullish. In the short term we've already got the stars aligned here".

A drop in US oil production this week supported prices.

"Sanctions will be extremely tough".

Beard doesn't see "any chance" that the European Union's payment mechanism to keep trade with Iran could work.

Crude has eased after climbing to a four-year high earlier this month.

The extra cargoes indicate a willingness by Saudi Arabia to increase crude supply to make up the shortfall once sanctions by the United States on oil exports from Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), start up on November 4. Iran's tankers were constrained for India, China, and the Middle East region in the first week of the present month, as per the data.

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