04-20-2018, 11:24 AM
4-20-2018
The return of $100 oil
$100 oil is back on the table as OPEC stays strong on tightening production limits
Oil prices will rise to $100 per barrel if Saudi Arabia gets its way.
OPEC and its non-OPEC partners are even considering yet another extension that would push the cuts into the middle of 2019. But with inventories back to average levels and expected to fall for the foreseeable future, the production limits would surely push the market into a deficit.
OPEC just posted its fifth consecutive month in which it recorded a new record high compliance rate with the production limits.
Saudi Arabia’s motivation for higher oil prices will magnify the influence of existing trends in the oil market. That is, the shrinking inventory surplus, strong demand, and geopolitical tension are all working together to push up benchmark prices.
The return of $100 oil
$100 oil is back on the table as OPEC stays strong on tightening production limits
Oil prices will rise to $100 per barrel if Saudi Arabia gets its way.
OPEC and its non-OPEC partners are even considering yet another extension that would push the cuts into the middle of 2019. But with inventories back to average levels and expected to fall for the foreseeable future, the production limits would surely push the market into a deficit.
OPEC just posted its fifth consecutive month in which it recorded a new record high compliance rate with the production limits.
Saudi Arabia’s motivation for higher oil prices will magnify the influence of existing trends in the oil market. That is, the shrinking inventory surplus, strong demand, and geopolitical tension are all working together to push up benchmark prices.