The prices for the crude oil manage to hit the $70 levels as they keep surging on the upbeat effects of the prolonged OPEC and non-OPEC oil production cuts. The output extension cut managed to keep the prices higher as 2018 starts; analysts expect oil to hit the lucrative $80 mark due to the consistent performance this week.
This is the first time in three years that the oil prices managed to hit the $70 a barrel level; prices managed to ease just before the market closes as massive selloffs flood the line due to the overwhelming price and performance.
Furthermore, Brent’s prices managed to hit a massive high on the trading session which was recorded to be at $70.05, and easing just before the market closes; this is the first time since the prices were up to crazy levels since December of 2014. The prices were last tallied to be at $69.26 a barrel, 6 cents higher than of the previous session.
On the other hand, the U.S. West Texas Intermediate crude was also trading at great levels; the prices were tallied to be 23 cents higher at $63.80. The prices were also eased as massive selloffs also crowded WTI after it climbed to the $64 a barrel; this is also the first time that the prices reached such levels since December of 2014.
The oil prices managed to continue their massive sweeping performance since June; that was the time where the output cut extension has been brought and debated upon. All-in-all, the prices are currently hovering somewhere the 15% increase from last month’s prices.
Meanwhile, several motoring groups worldwide are continually pressing that the current prices are “fearful”. They mentioned that the pump costs are sure to follow the Brent crude’s march and could take a massive hit on drivers and businesses.
More information about the current oil inventories reveal that the total oil in storage dipped by a whopping 5 million barrels from all week. The massive oil inventory glut was subsequently pushed out of the scene and got effectively eliminated from the whole scene.
The latest impending threat to the oil price surge is reluctant Iran; the country still withheld itself from the output cut and analysts are looking to expect a supply disruption. Furthermore, the whole inventory cut can still manage to dilute the impending Iran problem although some inventory fluctuation is still expected.