While cryptocurrencies have recently been at the forefront of the industry, US equity markets are also reaching record highs as commodities are taking their place, with crude oil showing solid growth.
A positive factor has taken over the markets recently; for the first time since 2014 Brent oil hit $71 per barrel – marking a first, after a 3 year stretch.?Moreover, WTI crude futures increased to $66.35 per barrel, also marking its highest point since December 2016 – with both crude benchmarks having soared by almost 60% since the middle of 2017.
According to the Energy Information Administration (EIA), US crude inventories dropped 1.1 million barrels in the week of January 19, showing the lowest level since 2015.
On the other end, as a result of the current weakening USD, financial traders are looking to move their investments from currency to commodities futures, such as the likes of crude oils.?Moreover, US production reached 10 million barrels per day for the first time since 1970.
In light of the positive rise in prices, Goldman Sachs noted that it underestimated how quickly the market was moving, and thus increased its forecast for Brent oil, indicating that prices could hit $82.50 per barrel by the summer.
Some crucial indications for investors and traders to be aware of that may trigger some heated conflicts in 2018 are:
European refiners are threatening to cut Russian oil purchases?Iraqi forces are planning military operations to secure oil route to Iran Motive Enterprises LLC shut down the large crude distillation unit at its
603,000-barrel-per-day Port Arthur, Texas refinery
Currently being one of the most actively traded commodities globally, trading oil, offers high volatility for traders, making it an attractive market. Some factors which influence the fluctuating price of oil, include weather changes, geopolitical factors, demand and supply, and potential world crisis, to name a few of the circumstances. The ever-changing market, makes it an intriguing one for investors to get involved in.