Oil Prices Reach Highest Level : Oil prices rose to their highest level since mid-April on Monday. Saudi Arabia and Russia pledged to curb oil production for another month. This will boost worldwide markets and prices.
Brent crude oil rose 25 cents, or 0.3%, at 12:23 AM. Brent crude oil costs $86.49 per barrel. U.S. West Texas Intermediate crude oil rose 23 cents to $83.05 per barrel.
The longest winning streak from December 2021January 2022 has been six weeks for these contracts.
Oil prices have risen for various reasons in recent weeks. The U.S. not raising interest rates, OPEC+ producing less oil, and China needing more oil are all possibilities. Significantly, the biggest oil user had a bad second quarter.
Saudi Arabia, a major oil exporter, will restrict output by 1 million barrels daily until September. They want stable oil prices. The kingdom also hinted at longer production cuts. Saudi Arabia plans to produce 9 million barrels per day in September.
In September, Russia will stop selling 300,000 barrels of oil per day. It also covered the Black Sea drone attack on a Russian navy base by Ukraine. The strike severely damaged a Russian vessel. Novorossiysk reopens. The port handles 2% of global oil.
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ANZ analysts said the market focused on Saudi Arabia’s suggestion to increase cuts. This and lower oil inventories have helped the oil market in recent weeks.
Saudi Aramco hiked prices for most Asian oil in response to production reductionthe third month in a row in September.
CMC Markets specialist Tina Teng believes OPEC+ reduction, China’s economic growth, and U.S. economic optimism keep crude oil prices constant. Like April, Teng warned prices might be hard to raise.
I.G. market expert Tony Sycamore predicted that WTI oil might reach $93.50 if it stays above $84 per barrel.
Chinese GDP data will be closely watched by investors. They wonder if Beijing will support their economy. China is the second-largest economy.
Four U.S. oil rigs were idle last week for eight weeks. March 2022 was the lowest. Baker Hughes reports this every Friday.
Our Reader’s Queries
Will oil price reach $100?
Goldman Sachs’ Asset & Wealth Management Investment Strategy Group (ISG) predicts that the price of oil will hover between $70 and $100 per barrel throughout 2024.
How high could oil prices go?
According to J.P. Morgan Research, the global oil market may experience a shortage of 1.1 million barrels per day in 2025, which could increase to 7.1 million barrels per day by 2030. This could lead to a surge in oil prices, with projections of $150 per barrel in the near to medium term and $100 per barrel in the long term. These estimates are higher than J.P. Morgan Research’s long-term forecast of $80 per barrel.
What is the highest price of oil in history?
Back in 1980, the world witnessed a significant surge in prices, with a global average of US$107.27. However, this record was broken in July 2008 when prices reached an all-time high of US$147.
Could oil reach $200?
While it’s not impossible for the price to reach $200 in an escalation scenario, it’s highly unlikely that the market could sustain this price for an extended period of time. Therefore, it’s uncertain whether the price would actually reach this level. In fact, the chances of this scenario occurring are less likely than the first one.