The oil prices are started with advancing toward $61, drillers in the U.S. standstill due following a slip in production due to protests in Iran.
Crude Oil prices witnessed 3.3 percent increase during the last week in New York and 0.4 percent increase during this week—According to Baker Hughes. Iran is the third-largest producer of Organization of Petroleum Exporting Countries (OPEC) which is currently facing difficulties due to the unpleasant rallying, protests in the country.
Crude Oil got its lowest point in 2015/16 which was recovering steadily during 2017. The Organization of Petroleum Exporting Countries (OPEC) and its members cut supply in order to reduce the global excessive supply. U.S crude oil supply also fell since October.
Now the Oil is gaining momentum again which could last for long, the oil prices are on the rise along with supply. According to a Sydney-based analyst at CMC markets, Ric Spooner, “There appears to be a developing consensus that the increase in U.S. shale production this year may not be as sufficient as many had forecast.”
The trading rates were $60.66 a barrel on the New York Mercantile Exchange which was up by 24 cents in Hong Kong. The Front-month prices rose by 18 percent last year for a second annual increase.
Many people died during the protests in the city of Mashhad Iran. The protests started due to the poor handling of the economy and continue to expand to religious establishment and government security forces.
If the trend continues, there might be a sharp increase in oil prices ahead in 2018. Since the last dip between February and March 2016 the oil continues to recover which marginally dips in the long run.