Crude oil prices rebounded above $112!!!

Crude oil prices rebounded above $112!!!


The Oil prices continue trading near the highest level in three months
In fact, US crude oil rose to $106.15 per barrel, while Brent crude rose to $ 112.10 a barrel, the highest price since the beginning of March.

The main factors that pushed the oil higher are the following.

  • U.S. inventories :
The American Petroleum Institute weekly report showed on Tuesday that crude supplies rose 1.5 million barrels, while on Wednesday; the U.S. Energy Information Administration said crude stockpiles fell 2.6 million barrels for the week ended June 6th 2014.

  • OPEC meeting :  
 The member states  of the Organization of Petroleum Exporting Countries (OPEC) met yesterday in Vienna , the Australian capitol,  and decided to keep the production target unchanged and to maintain the output ceiling at 30 millions barrels per day.
In addition, “Ali Al Naimi” Minister of Petroleum and Mineral Resources in Saudi Arabia, which is considered the top producer of oil in OPEC, has claimed yesterday that there is no need to change or increase the production since the supply is highly sufficient.

  • Rising tensions in Iraq :
 Brent crude surged above $ 111 a barrel on Thursday amid fears that the escalating violence in Iraq could disrupt oil supplies and prices received further support from the unexpected withdrawal of U.S. crude stocks.

During this period the demand for the black gold has increased significantly, encouraging the traders to turn again to invest in commodities, but are the investors taking advantages of this oil bull market, to prepare for the next phase of the bear market??

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