The past few weeks have been more than kind to traders interested in crude oil. Despite the growing reserves of the United States, many other factors seem to dominate the market. With global supply tightening, the prices of oil are surging.
The main recent factor for this is Iran and the end of the nuclear deal with them. Donald Trump called an end to the deal last week and the rest of the countries part of the agreement have little choice in abiding by Trump’s decision. Due to this sanctions on Iran will resume, limiting the supply out of the Middle Eastern country. Iran is one of the most important oil exporters in OPEC, so this will significantly affect the global supply.
Oil prices were also pushed upward by the crisis in Venezuela. The country has been hit by a severe inflation, to the extent that there are food shortages and widespread famine. In the current state of event Venezuela has been unable to keep up with their oil supply schedule.
Last but not least, OPEC is still following through on its agreement to limit supply to the market.
The Brent variety of crude managed to reach $80.18, while the WTI brand was at $72.06.
