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The U.S. crude has been rallying since 208 started; the commodity is set to surge on another high as OPEC-led production cuts give the crude a massive boost. The positive figures from the U.S. crude inventories also helped boost the prices up.

This is the biggest number the commodities managed to push form over three years from now; the great job from the Organization of the Petroleum Exporting Countries and allied countries such as Russia who are also doing a fantastic job in keeping supply limits intact. This is the second straight year that the OPEC and non-OPEC countries teamed-up with the output cuts.

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Oil Prices Update

The U.S. crude managed to keep a great momentum and pace this 2018, today, the prices managed to shoot up to the %63.19 a barrel. The figures were massive and this is the first time since they managed to hit %63 mark, the last time was December of 2014. Today’s prices were up by a massive 2% from the previous trading session, which was at $1.23.

Most analysts are expecting for the price to surge to the lucrative amount of $70 per barrel. The last time that the prices significantly reached $70 was last May 2015 which was around $69.08 and with the positive supply news; the price may significantly fluctuate to the $70 mark.

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OPEC Production

The OPEC oil production was steadily on a daily 32.41 barrels per day in December and it continues to falter on lower figures today. Headlining today, the inventories managed to drop by a whopping 7.4 million barrels from last week. On the other hand, the gasoline and distillate inventories managed to surge by a bit, investors worry about the numbers in the week.

Furthermore, the whole market continues to keep their focus on Iran as they continue to decline the OPEC inventories cuts continuation; President Donald Trump is also looking to travel there and looks to discuss the nuclear deal.

Overheated Market

One more thing that analysts pointed out was the overheated crude market; they pointed that the massive 13% surge in the start of the year really signifies a massive overheated market. The reports are even coming in that Asia is looking to have inflated oil prices combined with lackluster supply; Asia’s oil prices are higher than the rest of the world.

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