$100+ Oil Is Back

$100+ Oil Is Back

$100+ Oil Is Back. Will it remain over 100?

On Monday Oil prices jumped more than 4.6% as the oil market tried to digest the latest developments in the Middle East, and as the dollar weakened. 

Brent oil prices marked a high of $105.8 per barrel on Monday. WTI was trading above $102.

Prices of the oil increased as traders assessed the Saudi sentiments after the meeting of US President Joe Biden with the Saudi Crown Prince on Friday.

Biden’s advisor on International Energy Affairs, Amos Hochstein, said we believe that Saudi Arabia and the UAE will take some steps to boost the oil supply.

While the increased prices indicated that Saudis have no intention to boost oil supply at this time. 

During the last week, a sell-off was seen on notions that Biden’s trip will result in boosting oil production, but the decision seems to be reversed.

The oil prices are also going up due to the weakening of the US dollar. Investors have also softened their expectations regarding the interest rate hike by the Fed next week.

A fall of 0.464% was seen in the U.S dollar index.

Markets hedging oil lower during the meeting of Biden and the Saudi Crown Prince. Despite widespread doubts that anything would be accomplished in regard to increasing oil production.  

Iraq’s oil minister said that oil will continue its trade at over $100 per barrel for the rest of this year.

$100+ Oil Is Back.

The next meeting for the OPEC will be on 3rd August.