Crude oil price nears $120
Crude oil prices is nearing $120 per barrel, due to Saudi Arabia’s decision to raise the price of its crude for Asian buyers. It is the highest level in over three months.
The fuel market has also tightened significantly, with retail gasoline prices rising to a new high
TheCornet reports that crude prices have risen about 60% this year, owing to resurgent demand from nations recovering from the pandemic.
Another factor is Russia’s invasion of Ukraine, which has fuelled inflation and driven up the cost of everything from food to fuel while prompting central banks to tighten their monetary policies.
Also, OPEC+ agreed last week to increase output, following repeated appeals from the US to do so.
The cartel announced that it would add 648,000 barrels per day in July and August, a 5% increase over recent months.
However, OPEC has recently struggled to meet its supply targets, creating worries whether it will achieve the goal.
Market pundits lhave recommend a bullish trend for the foreseeable future, noting that a breach of $117 a barrel will pressure the price to accomplish a temporary bearish correction before rising again.
