Energy experts are forecasting that crude oil prices will persist in their upward trajectory throughout the year, primarily attributed to production cuts. On September 5th, the price of crude oil soared to $90 per barrel, marking its highest point in the last decade. This surge can be attributed to the collective decision of Saudi Arabia and Russia to extend their crude oil supply reduction until the year’s end. However, on September 7th, crude oil prices steadied, coinciding with a six-month high in the value of the U.S. dollar.
Saudi Arabia, in particular, has opted to trim its crude oil supply by one million barrels per day for the entirety of this year. Consequently, this move is expected to sustain the upward momentum in crude oil prices until December. Saudi Arabia has established a production target of nine million barrels per day for the remaining months of the year. Simultaneously, Russia has prolonged its embargo on the export of 300,000 barrels per day, also extending until the end of December. Initially anticipated to continue through October, this extension has further contributed to crude oil’s surge to $90 per barrel.
The current year has witnessed significant price fluctuations in crude oil, fluctuating between $70 and $90 per barrel. Over the past 15 days alone, crude oil prices have risen by eight dollars per day. On August 23rd, crude oil stood at $82 per barrel, only to reach $90 per barrel on September 5th. Market experts observe a prevailing upward trend in crude oil prices.
These experts suggest that if there is a resurgence in demand from China, crude oil prices could potentially escalate to $100 per barrel. Nevertheless, this uptick might be short-lived, given forthcoming elections in India and the United States. Analysts estimate that crude oil may ultimately find support at the $80 per barrel mark.
