Inside: Interest market
Oil price at highest level since 2014
The rise in oil prices seems unstoppable. The price of 1 barrel of Brent oil is well on its way to crossing the $70 mark. The increase is due to dwindling inventories.
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Choose the subscription that suits youThe Energy Information Administration (EIA) announced on Wednesday, January 10, that crude oil inventories in the United States (US) have shrunk by just under 5 million barrels. For 8 weeks now, various American agencies have been reporting on declining oil supplies. The price of 1 barrel of Brent oil (North Sea) ditch Wednesday, more than $1 higher at $68,93. This is it top level since the end of 2014.
This week's reported inventory decline was tighter than previously thought. Earlier this week, the American Petroleum Institute (API) expected a decline of 11,2 million barrels.
Trump is at odds with Iran
Trump is also keeping the oil market busy. The American president plans to break the nuclear deal with Iran or adjust the conditions. To force this, he threatens economic sanctions against Iran. Any sanctions could affect Iran's oil exports and thus affect the oil price.
The EIA adjusted its price forecast for 2018 upwards this week. The energy agency now assumes an average oil price of $55,33 per barrel for Texas oil and $59,74 per barrel for Brent oil.
The oil price has clearly been on the rise since July 2017.