Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

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Oil prices strong on increasing demand and tightening supply

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Oil prices have seen a significant rebound during late October and have carried forward the momentum in this month. As rising tensions in the Middle East have changed the course of future supplies towards a definite level of uncertainty, the power grabbing within Saudi Arabia has left many businessman and media moguls in the prison. The recent crackdown has engulfed Saudi Aramco in its folds as well. Prince seeks to eradicate the menace of corruption while continuing his authoritarian rule in the Kingdom.

Comparative inventory has been dramatically reduced in 2017. The causes of US inventory drawdowns are clear: increased exports of crude oil and greater domestic consumption.

Oil prices hit two-year highs on Monday amid signs of continuously tightening markets and strong signals from Saudi Arabia and Russia that they are willing to extend their production cut deal beyond March 2018. The sentiment for the oil market has been bearish throughout the last few years but as mix of events (geopolitical, supply cuts, OPEC extension etc.) during the last three months have sent the prices roaring to their yearly highs.

U.S. West Texas Intermediate (WTI) crude slipped 10 cents, or 0.2 percent, to $57.25 a barrel by 0231 GMT. The contract surged 3 percent on Monday, the biggest percentage gain since late September.

Brent crude futures were down 19 cents, or 0.3 percent, at $64.08.

On the back of rising instability within in the country, Saudi officials have had an escalations of tensions with Iran and Yemen. The Saudi Arabia-led military coalition fighting against the Houthi movement in Yemen said on Monday it was closing all Yemeni air, sea and land crossings.

Posted on: 2017-11-07T11:27:00+05:00