Oil Price Briefly Reaches $70 as Buoyant Global Economy Bolsters Demand
- 6 years ago
Oil Price Briefly Reaches $70 as Buoyant Global Economy Bolsters Demand
Both countries are major suppliers of crude — Iraq produces 4.5 million barrels of oil,
and Venezuela adds around 1.8 million barrels — and any disruptions there could have a significant impact on global markets.
Prices for Brent crude, the international benchmark, have risen nearly 50 percent since June, briefly passing $70 a
barrel more than once in the last week — the first time the per-barrel price has reached $70 since December 2014.
That deal, renewed in November through the end of this year, has removed around one million barrels of crude a day from the global supply.
For instance, the shutdown in December of a British pipeline system in the North Sea removed
an estimated nine million barrels of oil from the market over nearly three weeks.
And a buoyant global economy has bolstered demand, meaning prices could go higher still.
Both countries are major suppliers of crude — Iraq produces 4.5 million barrels of oil,
and Venezuela adds around 1.8 million barrels — and any disruptions there could have a significant impact on global markets.
Prices for Brent crude, the international benchmark, have risen nearly 50 percent since June, briefly passing $70 a
barrel more than once in the last week — the first time the per-barrel price has reached $70 since December 2014.
That deal, renewed in November through the end of this year, has removed around one million barrels of crude a day from the global supply.
For instance, the shutdown in December of a British pipeline system in the North Sea removed
an estimated nine million barrels of oil from the market over nearly three weeks.
And a buoyant global economy has bolstered demand, meaning prices could go higher still.