On back of production cuts; crude prices at 2015 highs; heres what it means
Production cuts in OPEC and Russia pulled the oil prices to 2015 highs on back of healthy demand expected around the world.
While the Brent Crude hovered near 65 dollar US, the West Texas Intermediate (WTI) crude futures were at $58.50 a barrel, up 3 cents from their last settlement.
Brent has risen by 47 percent since mid-2017.
The Organization of the Petroleum Exporting Countries (OPEC), the Middle East-dominated producer club, and Russia – the world’s single biggest oil producer – have been withholding output in order to tighten the market and prop up prices.
The agreement to cut started last January and is set to cover all of 2018.
The production cuts come amid healthy global demand which many analysts expect to hit 100 million barrels per day (bpd) for the first time at some point next year or in 2019. >