Oil prices above $130
As I am speaking, the crude oil prices at the New York Mercantile exchange are above $130. This occurs only 15 days after oil prices reached $120.
This is a strong acceleration in the oil prices increase as previously it took around two months for oil prices to increase by ten dollars.
The cause for such a fact was the OPEC which doesn’t plan to increase their production and fears over stocks.
According to Bloomberg :
Oil rose above $130 a barrel for the first time after at least five banks raised price forecasts in the past week on expectations supply constraints will persist.
Crude oil for July delivery gained as much as $1.21, or 0.9 percent, to $130.28 a barrel, in electronic trading on the New York Mercantile Exchange. It traded for $130.22 at 11:13 a.m. London time.
Oil for delivery in December 2016 surged $17.08, or 14 percent, in the three trading days since Goldman Sachs Group Inc., raised its forecast to $141 a barrel for the second half of the year. Yesterday, Societe Generale SA and Credit Suisse raised their forecasts, while billionaire Boone Pickens repeated his prediction for $150 oil this year.
“You see more money going into the back end of the curve,” said Olivier Jakob, managing director of Petromatrix Gmbh in Zug, Swizterland. “The issue is not the fundamentals. What’s bullish is the comments from people like Goldman Sachs, Boone Pickens.”
Meanwhile, oil future prices reached $140 according to this article from the Financial Times. Oil prices aren’t due to stop increasing.