Oil prices have extended gains on Monday as tit-for-tat strikes between the US and Iran on vessels sailing in the Strait of Hormuz have mounted concerns
of prolonged supply disruption. Both WTI and Brent Crude prices gained over 0.5 percent and Brent Crude traded near 97 dollars per barrel. Supply and oil price fears heightened further after major OPEC nations stuck with their plan to keep oil production quotas unchanged, while the Iran war continues to shutter vast swathes of output in the Middle East. Seven countries led by Saudi Arabia and Russia held a monthly video conference and stated they will keep targets steady in October after a series of symbolic quota increases, OPEC said. That’s in keeping with the group’s roadmap to hold targets flat to the end of the year. Speaking to Times Now Digital, Peter McGuire, Oil Expert & CEO-Australia, Trading.com said, "I don’t think OPEC+ holding output quotas steady will have any impact on prices in the short term. It guarantees supply and prices are high due to geopolitical premium." In fact, when asked about how could US' landmark 65 billion barrel Venezuelan oil deal impact oil prices and could this put the OPEC in trouble earlier, Peter McGuire, Oil Expert & CEO-Australia, Trading.com said, "the likes of Iraq and large producers possibly Russia stepping up to the plate if they need to increase their production. I think the US will be a major oil exporter across the world. I think that's where it's going from all forms of energy, natural gas, course, know, LNG etc and I would say this deal, it's going to dramatically increase their footprint. What does it mean for OPEC? I won't be surprised if Venezuela pulled the ripcord and followed the UAE and exits. I wouldn't be surprised. It might be much sooner than what many traders would be anticipating. I wouldn't be surprised if it was sometime in September because of the announcement of this deal, but I could be wrong."
