Since November 2014, oil prices were never that high, Oil prices remained upward on Thursday with Brent Crude reaching closer to $80 per barrel. Due to tight oil supplies and stronger demand the prices are perpetually increasing.
In the market, Brent crude futures were at $79.36 a barrel at 0451 GMT, which was 8 cents up from their last close.
While U.S. West Texas Intermediate (WTI) crude was at $71.71 per barrel, it was also 22 cents up or 0.3 percent up from their last settlement.
U.S. Crude inventories dropped by 1.4 million barrels just in a week reaching 432.34 million barrels.
According to the International Energy Agency (IEA), the organization had lowered its global oil demand growth forecast for 2018 from 1.5 million barrels per day (bpd) to 1.4 million bpd.
The global oil demand would remain at 99.2 million bpd in 2018 the IEA said. The supplies currently stand at 98 million bpd due to cuts imposed by Organization of the Petroleum Exporting Countries (OPEC), “Strong non-OPEC growth is expected to grow by 1.87 million bpd in 2018” said IEA.
Where Iran sanctions play a critical role in oil markets, leading producers in the United States is also increasing, where crude output has soared by 27 percent during the last 2 years to a record high 10.72 million bpd.
This includes the United States among the top producer Russia, which pumps around 11 million bpd. As U.S crude is surging in production, it is appearing increasingly in global markets.