Oil prices sustain highs with help from rising demand and declining OPEC production

Oil prices were relatively stable today containing their highs after reaching highest levels amid the increasing demand and ongoing cuts led by OPEC and Russia. The prices have also picked up after tensions arose in Iran after protests have engulfed the entire nation.

U.S. West Texas Intermediate (WTI) crude futures were at $60.40 a barrel at 0141 GMT, up 3 cents from their last close, and not far off the $60.74 June 2015 high reached the previous day.

Brent crude futures - the international benchmark for oil prices - were at $66.55 a barrel, down 2 cents but still not far off the $67.29 May 2015 high from the previous day.

However, speculations are abound whether the prices will sustain in the coming few months as US production increases and doubts on whether the demand will continue at current levels. With production resumed after pipeline shutdowns and Iran’s protests showing less than the anticipated effect on Oil prices, analysts fear the prices may decline in the wake of rising US production.

U.S. oil production has risen by almost 16 percent since mid-2016, hitting 9.75 million bpd at the end of last year. The US Shale production has become one of the biggest threat to the OEPC and Russia led efforts to bring oil prices upwards.