US Oil Price at the Highest Level Since Early 2020
The price of a barrel of US oil rose above $ 65 on Friday, for the first time since January 2020. The oil price is supported by oil cartel OPEC and allies’ decision to limit oil production again in April.
On the contrary, a relaxation of production restrictions had been expected.
American oil price climbed 2 percent on Friday to $ 65.37 a barrel (from 159 litres). The price rose almost 5 percent on Thursday. Brent oil also became more expensive again, up 1.9 percent to $ 68.47 a barrel. Brent also went up considerably on Thursday.
During the low point of the corona crisis last year, much less oil was used because, for example, there was hardly any flying and people used the car much less because of working from home.
This resulted in an enormous oversupply, with the result that the oil price fell sharply and even turned negative for a while. Besides, traders invested money in the sale of oil to get rid of it.
Several market experts have now revised their expectations for oil prices upwards in the coming months. They also believe that the oil demand will be more intense due to the recovery of the world economy from the corona crisis and the vaccinations against the virus outbreak.