Oil prices reach highest level since mid-2015
By Trend
World oil prices have reached the highest level since mid-2015 on Nov.1 as a result of significantly improved compliance with OPEC oil output cut deal.
Brent crude futures rose to $61.49 per barrel at 12:10 GMT, reaching a session peak of $61.70 earlier, which is the highest level since July 2015. This is while West Texas Intermediate (WTI) oil stood at $54.94 per barrel.
OPEC’s output fell by 80,000 barrels per day and stood at 32.78 million barrels per day in October, reaching the compliance level of 92 percent.
Ole Hansen, Head of Commodity Strategy at Saxo Bank wrote in his article that crude oil continues its ascent with recent news and data on growth, supply and demand all giving the bulls with little to worry about.
OPEC supports the rebalancing process by maintaining high compliance to its production cuts while US production growth looks overstated at a time of falling inventories, he added.
“OPEC and Russian production cuts, combined with strong demand and supply disruptions in the US and Northern Iraq, have supported the improved fundamentals,” Hansen said. “One of the key arguments for oil not being sustainable above $60 has been the outlook for a strong production response from non-Opec producers. Not least in the US where shale oil producers' ability to increase production very much depends on the forward price of oil. “
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