The current trade oil landscape
Brent crude futures hover just above the $90-per barrel mark. Investors are watching the market closely as they wait for important macroeconomic reports later this week that could affect the trajectory of interest rate in Europe and America. This article explores the latest developments in the oil trading industry, exploring the factors that have led to the current prices and their broader implications for global economics.
Prices Boosted by Voluntary Supply Reductions
Brent crude oil reached a significant milestone last week of $90 per barrel. This is a level that has not been seen for a decade. This notable increase in price can be attributed to the joint actions of Russia, Saudi Arabia and other oil-producing nations who have extended their voluntary production cuts by 1.3 million barrels a day (bpd). The commitment of two major oil producing nations has had a significant impact on the Brent benchmark contract.
However, even with this upward momentum, it’s essential to remember that the oil market remains volatile. Brent crude futures dropped to $90.58 barrel, while U.S. West…