by World Oil Prices close at week highs
It was a good week for oil owners around the world. All oil rose nearly 5% except for Iran Heavy and Saharan Blend. There have been a few different economic reasons as to why oil has been climbing and finishing higher and higher every week. One of the most significant reasons for a recent spike in oil is the news of a sit down between China and the US to agree upon a trade deal finally. The US, now the leader in oil production, has a large impact regarding world oil prices and supply. If talks with China are successful, it is likely oil could go above $70 per barrel.
Although oil prices globally have been increasing, banks such as Morgan Stanley and Barclays have become more bearish regarding the outlook of oil for the year. Brent oil, most commonly used in diesel fuels, was forecasted to be $65 but was cut down to $60. Daily demand was also cut as well. Last week, my article discussed the future of Aramco oil. It will be interesting to see how their possible IPO’s affect the world oil prices. With Aramco having to publish their full financial and total production amount, it will likely make the OPEC oil prices more stable.