Boost of Prices

[Yousef A Feda + 3]

     

As we can see the boost of prices happening these days in the oil industry reaching 85$ for Brent Crude.

This all comes related to the trade war between The US and China and The US sanctions on Iran. on the other hand, Saudi Arabia agreed with the US to increase oil production to compensate for the shortage of oil production in the global market due to US Sanctions on Iran that prevents Iran from selling Oil and multiple markets has withdrawn from Iran oil, even China has cut their Iranian oil purchases by half which was the largest buyer for Iranian oil. But at the same time, Saudi Arabia is not willing to reduce the oil prices by highly increasing production cause it's seeking the benefit to all OPEC and OPEC+ members and the global market is already well supplied and there is no need to increase oil production over 50,000 bpd now but could increase production of oil if there will be a higher demand on Saudi oil from Europe and China. I think this would create a balance in the global market by not increasing oil production more than the need for "Supply and Demand". The prices will continue to rise and I expect Brent Crude might reach 90$+ before the end of 2018