The good news for the traders of oil keeps on coming. After reaching new highs last week, exceeding investors’ expectations, oil started this week on an even more positive note and managed to surpass the psychological level of $75 per barrel. This is officially the highest level since November 2014, a time before the oil market had reached its massively oversupplied state thanks to the race between the United States and OPEC.
The price of oil has been gradually increasing since 2016 when OPEC’s agreement to cut down their production and exports first came into force. The member states of the organization have stayed true to the agreement all this time and it has paid off. In addition, oil prices have received small boosts every time there has been any sign of unrest in the Middle East, most recently concerning Syria. Another factor this time around is that the United States might be reconsidering the Iran deal. In the US imposes sanctions on Iran, this will push the price of oil further up. This will become clear by May 12 at the latest.
The Brent crude reached $75.27, while the US crude rose to $69.15.
