It has taken 500 days and the sacrifice of almost a billion barrels in
lost oil output for the global crude market to eradicate a deep supply
surplus, but oil prices have now hit OPEC heavyweight Saudi Arabia's
desired level of $80 a barrel.
Brent crude futures reached an intraday high of $80.18 on Thursday May 17,2018, breaching the $80 a barrel level for the first time since November 2014.
Renewed US sanctions on Iran that could seriously hamper the country's oil exports, along with involuntary output declines in big producers such as Venezuela, Mexico and Angola have contributed to the bounce in the price.
Led by Saudi Arabia, the Organization of the Petroleum Exporting Countries and 10 of its partners including top producer Russia have cut their crude output by a joint 1.8 million barrels a day since January 2017.
The oil price has risen by $50 since hitting a 13-year low of $27 a barrel in January 2016 and has gained 50% in the last 12 months alone, reflecting both concern over geopolitics and confidence in a more favourable balance between supply and demand.
Brent crude futures reached an intraday high of $80.18 on Thursday May 17,2018, breaching the $80 a barrel level for the first time since November 2014.
Renewed US sanctions on Iran that could seriously hamper the country's oil exports, along with involuntary output declines in big producers such as Venezuela, Mexico and Angola have contributed to the bounce in the price.
Led by Saudi Arabia, the Organization of the Petroleum Exporting Countries and 10 of its partners including top producer Russia have cut their crude output by a joint 1.8 million barrels a day since January 2017.
The oil price has risen by $50 since hitting a 13-year low of $27 a barrel in January 2016 and has gained 50% in the last 12 months alone, reflecting both concern over geopolitics and confidence in a more favourable balance between supply and demand.
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