The recent political and corruption scandal in one of the prominent exporters of crude oil, Saudi Arabia, boosted the oil prices today. Reports have been suggesting that the commodity’s price has surged on an extremely upbeat price, tallying a near parity from some of the gains from 2015.
The purging of the alleged corrupt Saudi ministers have been helping the oil prices to surge to a two and a half year spectacle; we can expect that the prices can be sustained from the recent news and can surge more just before the week, or even before the year ends. Analysts have been keen on pointing that the oil prices will continue to be positive due to reformed ministers and a whole new system from Saudi Arabia after the woeful purging.
Oil Prices Today
One of the highlights from today is the performance from the U.S. West Texas Intermediate or the WTI which managed to increase by a whopping 3% last Monday before easing a meek 4 cents as the market starts today at $57.31 a barrel. Last Monday’s gain is the highest that the WTI has tallied ever since the Hurricane debacle last September.
The Brent crude futures were also upbeat and positive yesterday on the news about Saudi; the Brent was up by a massive 3.5% on that day before easing a mere 4 cents today at $64.22. Just like the WTI, this is the best and single price increase from Brent since late September.
Today’s prices were lower as the market stumbles upon vast analysis from the “purge”; the oil prices were lightly changed although the prices managed to recoup some of the losses in the midday trading. The Brent managed to hit a massive $65 in midday trading, the highest level since June of 2015.
Oil Price Speculations
According to hedge fund Again Capital’s founding partner John Kilduff, "We're in a bullish phase, so any kind of comment like this, the market seems to be reacting strongly to," While the global head of energy analysis at Oil Price Information Service, Tom Kolza, also mentioned that "You can grab all sorts of different headlines when you have a runaway market, and this is a runaway market right now," and "people throw caution to the wind, and this is like the grand finale of fireworks," he said.
The Saudi officials have noted that the actions were just initial plans and described it as the “phase one” of their overall strategy. While the latest news unfolds, the Saudi Arabia and Iran tension managed to spark as well; the Saudi Arabia-led military coalition has been reported that they were closing all the Yemen crossings yesterday.
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