Oil prices hit the highest level in 8 years

 Oil prices hit the highest level in 8 years

Oil prices in the US have crossed the threshold of 90 USD a barrel, the highest level since 2014, due to high demand for petroleum products and limited supply.

According to CNBC, the price of West Texas Intermediate (WTI) crude oil, one of the main US indexes, increased more than 2% in the trading session on February 3, to $ 90.23 a barrel. This is the highest price in the past 8 years, from October 2014. With this increase, the price of WTI oil has increased by nearly 20%. Meanwhile, Brent crude also gained 1.7%, to $91 per barrel.

Crude oil prices on the world market are in a strong uptrend after falling to a record low in April 2020. Geopolitical tensions between Russia and Ukraine, as well as in the Middle East, are reasons for market anxiety.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) on February 3 agreed to raise their March production target by 400,000 barrels per day, as previously announced. This move comes in the context that the organization is facing pressure, including the US, to increase production to curb the rise of world oil prices.

Some Wall Street analysts forecast that oil prices may soon reach the $100 mark a barrel due to short- and long-term supply shortages. Others said that "the 100 USD a barrel mark seems inevitable", but it will not be easy.

Capital analyst John Kilduff noted that supply is returning to the market and China's economic difficulties could create a "headwind". Besides, the falling US dollar is also "the necessary catalyst to prevent the sell-off from happening after the OPEC+ meeting and some weak economic data released recently".