Oil prices rises to highest level since November 2015
According to the latest data, the oil prices rose to its highest level since themonth of November 2015 due to concerns over Nigerian oil output disruptions and commends from Goldman Sachs indicating the oil prices might recover.
Oil prices rose 2 percent on Monday after Goldman Sachs said that the oversupply in the global oil supply network is over and there is actually a deficit and this might push up prices after a long time. Data showed that Brent crude futures were trading at $48.83 per barrel this morning, which is higher $1 or 2.05 percent.
The U. S. crude futures were also trading 98 cents, or 2.08 percent higher at $47.19 a barrel. Experts said that supply disruptions of as much as 3.75 million barrels per day (bpd)around the world have eliminated an oversupply of oil that pulled down oil prices by as much as 70 percent between 2014 and 2016.
The change in market situation led global analyst Goldman Sachs to predict a rise in oil priocves after a long time. The company has maintained that over storage will continue to impact oil prices, which may even fall to a low of $20 per barrel.
Goldman said, "The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected. The market likely shifted into deficit in May, driven by both sustained strong demand as well as sharply declining production."
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