Global crude oil blasted through $80 price level on Monday to peaked at $81.67 a barrel.
The jumped in price has been attributed to the comments of OPEC on production cut following President Trump’s call for lower oil prices.
Saudi Arabi, OPEC’s largest producer, and key ally outside OPEC, Russia, had said the cartel will not increase oil production without demand necessitating such increase.
The comment was taken as a direct response to President Trump’s comment, calling for lower oil prices.
OPEC’s refusal to cut oil prices bolstered crude oil outlook as experts now believed there will be supply gaps in near-term.
Ben Luckock, Co-Head of Oil Trading, Trafigura, said oil price could rise to $90 a barrel by Christmas and expect oil price to be $100 per barrel by the New Year.
Luckock believes there is enough demand to sustain this bullish run.
