Oil prices are at their highest level since late 2014. The main reasons for the hike is a report that U.S. crude inventories have declined. Further push to the bullish momentum was engaged when it become known that Saudi Arabia, the world’s most influential oil producer, is seeking to push prices even higher. As a result Brent crude oil futures at the London exchange have reached $74.44 per barrel.
WTI is traded at $69.18. Saudi Arabia, OPEC and non-OPEC nations including Russia are pursuing oil prices of $80-$100 by shorting the output. As for Saudi Arabia it is needed to accomplish fiscal goals and bolster the reforms that are going in the Kingdom. During the years of cheap oil financial stability of Riyadh regime was put under significant stress.
OPEC and delegations from other major oil producing countries will meet in Jeddah April 20. The next OPEC meeting is scheduled on June 22. There is wide belief that both meetings will reassure the policy of keeping the output as low as it is possible to maintain prices at high levels.
Instability at the Middle East, Israeli-Iran and Saudi-Iran tensions, as well as US-Iran tensions may drive oil prices even higher.