The oil prices this 20118 are completely stellar after bumping into major and minor problems just before 2017 ends which pulled the prices significantly down. Crude managed to keep a strong pace today as it continually creeps closer and closer to the lucrative $70 price mark.
Furthermore, the decision that the OPEC and non-OPEC countries, which is led by Russia, is currently putting its effect on the market and the massive production halts and oil inventories dwindling numbers continue to keep the bullish performance afloat. Now, analysts are looking forward to the potential of reaching the $80 mark as the $70 is closer and is even considered a done deal.
The $80 prediction also puts the whole market into divulging parties which believe that it can and can’t cross the massive future price target. Moreover, the data such as the stronger refining margins and sturdy foreign demand can surely boost the oil prices to great levels
The international oil benchmark was surging on great tides as it continues to pull-up with great increases; the benchmark managed to snag a massive $69.37 a barrel price, the prices continue to tally massive gains and analyst are expecting for it to hit the $70 any time before the weekends.
As of today, the OPEC and non-OPEC initiative to keep the inventories at bay and keep production to a minimum continues to bolster the overall oil prices and the great data from refineries and overall demand also keeps the bullish market running. The prices are also reaching great heights, even taking over the previous May 2015 prices.
According to the Royal Automobile Club’s spokesman Simon Williams, “If oil stays at this level, pump price hikes will be almost inevitable. With households across the country still feeling the cost of Christmas, this is not the start to 2018 anyone would have wanted. It could also negatively affect business and further fuel inflation,”
Meanwhile, analysts at Petromatrix also mentioned that “Russia and Saudi Arabia have managed to support prompt oil prices but at the cost of making the US the world’s largest oil superpower.”
Barclay head of Oil Market Research, Michael Cohen mentioned that "You’re going to see a bunch of new crude supply coming on to the market this year from the U.S. So all in all, on a balanced basis, we don’t see the kind of shortage to bring us to $80 for a sustainable basis."
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