Despite a push in the oil prices over the course of last few months, the questions are being raised about the durability of oil prices in the international markets. A wide range of factors have culminated together to bring about the upward change in the oil markets since the falls of 2014.
On Friday, oil prices were relatively stable as the OPEC – led cuts, coupled with the tightening US market and ongoing Iranian tensions have helped the prices prop up.
U.S. West Texas Intermediate (WTI) crude futures were at $61.95 a barrel at 0151 GMT, 5 cents below their last close but not far off the $62.21 May 2015 high reached the previous day.
Brent crude futures were at $68.03 a barrel, 4 cents below their last settlement, but not far off the $68.27 high from the day before, also the highest since May 2015.
But would this Bull-run built to last?
Given the fact that oil prices have not responded to the situation in Iran, and US Shale Production Prices set to the 10 million barrels mark in the coming months, achieved only by Russia and the Saudi Arabia, analysts fear the bull run may not necessarily become bearish but will halt in the coming days.
Oil started the New Year on an incredibly bullish note, in part due to ongoing tensions in Iran and with definite help from OPEC's supply cut rebalancing the markets.
While the current momentum suggests that further upside is on the cards, it must be kept in mind that U.S. shale remains a threat to higher oil prices.