Rising optimism around global economic growth coupled with continued OPEC compliance to output targets and rising geopolitical tensions all contributed to pushing Brent oil prices to near 2014 highs, according to a recent report on the oil market by Riyadh-based Jadwa Investment.
“Although oil prices were pressured somewhat at the start of April due to trade tensions between China and US, they have
since rebounded, as regional geopolitical tensions have become more predominant,” Jadwa writes.
“Meanwhile, latest available data shows that both OPEC and Russia have been adhering to previously agreed production levels, and their efforts have contributed to bringing commercial crude oil stocks back in line with long term averages.”
The report, released last week, comes as another report in Reuters, citing three industry sources, said that Saudi Arabia “would be happy to see crude rise to $80 or even $100 a barrel” in what would be “a sign Riyadh will seek no changes to an OPEC supply-cutting deal even though the agreement’s original target is within sight.”