The Price Of Brent Oil Rose To A New High In Seven Years
The cost of March futures for Brent oil on the London ICE Futures exchange rose to USD 91.36 per barrel. The last time the price of Brent crude rose above this level was at auction on October 9, 2014. The price of futures for WTI crude oil for March delivery on the New York Exchange rose to USD 88.7 per barrel.
Oil prices continue to grow due to the fears of market participants of a possible shortage of supplies against the backdrop of growing demand for fuel in the world. Prices hit a seven-year high as demand continues to outstrip supply despite surplus forecasts. One of the main reasons for the deficit is the lower production of OPEC+ countries than expected. Despite the monthly increase in the production quota by 400,000 barrels per day, actual production in December lagged behind the allowed 790,000 barrels per day.
The investors are also focused on the next OPEC + meeting which will be held on Wednesday next week, February 2. The alliance of oil producers will probably confirm that oil production quotas for March will be once again increased by 0.4 million barrels per day. Since August 2021, OPEC+ has been gradually easing restrictions on hydrocarbon production, introduced after the collapse in demand in 2020. Every month, quotas are increased by 0.4 million barrels per day.