Oil to rise to $90 a barrel this year as tensions in Middle East escalate, says analyst
What caused oil prices to rise to $90 a barrel?
Escalating tensions in the Middle East, particularly between Israel and Lebanon's Hezbollah militia backed by Iran, along with increasing demand, have led to a rise in oil prices, with analysts predicting prices could reach $90 per barrel. Additionally, shrinking crude and product inventories, higher road traffic demand, and increased jet travel have contributed to the surge in prices.
How much does Iran contribute to global oil production?
Iran contributes about 3 million barrels of oil production per day, accounting for approximately 3% of the world's total oil output. The country holds the fourth-largest proven oil reserves globally, with 157.53 billion barrels as of 2016.
What are the current prices for Brent and West Texas Intermediate?
The current prices for Brent and West Texas Intermediate (WTI) crude oil are $86.44 per barrel and $83.59 per barrel, respectively. These prices are influenced by factors such as extraction costs, market regulations, supply and demand, new resources, consumption patterns, and global events.