Crude Oil Slide Below $68

Brent oil price crossed the barrier of 75 USD per barrel

But that is not the case: US crude oil production is forecast to grow by 1.4 Mbd, or 15 percent, this year to the highest annual average ever, and yet OPEC has still succeeded in boosting prices, which may continue to rise above expectations.

Oil prices were little changed on Tuesday after Brent hit its highest level since November 2014, supported by strong demand, OPEC-led production cuts, and the prospect of renewed USA sanctions on Iran.

"I see oil possibly scaling US$80 per barrel and perhaps even cresting at US$85, but I suspect Russian Federation and other Opec members would argue for supply increases at those levels".

With most USA producers now profitable at prices under $40 per barrel and the forward curve significantly higher than that for years to come, American drillers will likely continue to increase output as they are able to hedge themselves profitably for the foreseeable future. "No good and will not be accepted!".

"Looks like Opec is at it again", he tweeted.

There are reports that Nigeria's crude oil exports are under pressure as the United States is flooding Europe market with a large volume of crude.

A rise in geopolitical tensions has been the main driver of prices in recent times with concerns mounting over whether the Trump administration will withdraw from the 2015 nuclear deal, which he called "insane" yesterday, and return to sanctions, a decision which needs to be made by 12 May.

More news: Door to US-China trade talks seems to open after IMF meeting

Oil broker PVM's Tamas Verga states that the probability of the USA staying in the nuclear deal with Iran is low. "Oil at $100 would essentially amount to a doubling of the price from the past few years, which would quickly put an end to high demand growth rates", ET said.

The Brent Crude Oil Index went as high as $75.27 and is now trading at $74.68 per barrel.

A surprise fall in USA gasoline inventories by 2.968 million barrels is a proof of strong global economic growth and reflects declining refinery utilisation due to seasonal maintenance, he said.

"Oil prices are high because the dollar is low", Daniel Lacalle, chief economist at Tressis Gestion said on Thursday.

The expert believes that Donald Trump will not extend the nuclear deal with Iran. Conventional thinking over the past several years revolved around the belief that OPEC was powerless and shale's massive growth could prevent future price spikes and solve longstanding energy security problems. "Imagine how much money the average American would save if we busted the OPEC cartel", he said in February of 2012 when prices were $120 per barrel.

If oil and fuel prices continue rising, the political pushback from consumer countries against OPEC will only intensify.

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