Oil price to highest level in a year

The oil price has reached its highest level in more than a year this week. The diesel price follows the trend and is now above €1 per litre.

The oil price reached a new high on Tuesday 9 February. The price for a barrel of Brent oil was $61,21 on that date. It is the first time in more than a year that a barrel of Brent crude has cost more than $1. After that, a cautious decline started. It was expected to last for a longer period of time.

Oil consumption down
The fact that this trend has now changed is because OPEC countries expect less oil to be used this year than previously forecast. The American 'International Energy Agency' also states that there is currently a relatively large supply compared to demand. Global demand for oil is therefore recovering more slowly than previously expected.

The question that arises is: how solid is the foundation under this price? The diesel price also recorded its highest level in more than a year this week. On Friday 12 February, the price for diesel will be €100,28 per 100 litres.

Jurphaas Lugtenburg

Is editor at Boerenbusiness and focuses mainly on the arable farming sectors and the feed and energy market. Jurphaas also has an arable farm in Voorne-Putten (South Holland). Every week he presents the Market Flash Grains

j.lugtenburg @boerenbusiness. Nl

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