Oil prices hit three-month high

World Bank predicts prices will continue to increase after 2020

Oil has hit a three-month high, as progress is made towards phase one of a US-China trade deal.

In addition to the 18-month trade war, uncertainty around Brexit has had a negative impact on oil prices. However, with the Conservatives securing a convincing victory, and the UK now expected to leave Europe next month, some economic stability has been restored.

Trump has agreed to a limited trade agreement that will see the US reduce existing tariffs on $360bn (£270bn, €323bn) of goods. However, China has said phase one has yet to be completed.

Despite the hold up in Beijing, the news of a potential agreement has seen oil prices rally. Brent crude was up 0.7 per cent, to $64.63 a barrel, while West Texas Intermediate crude was up 0.5 per cent to $59.49 a barrel. This marks their highest price since September.

It’s been a turbulent time for the oil industry, with oil prices struggling for most of 2019. Its market price slumped to an average of $62 a barrel in the third quarter, from more than $75 a barrel a year ago.

In October BP reported a sharp fall in profits, blaming weaker global oil prices and the impact of Hurricane Barry, while the world’s highest-earning oil auction in Brazil was blighted by a crude spill in November.

What is your sentiment on Oil - Crude?

Vote to see community's results!

Tullow Oil also saw its share price plummet more than 70 per cent to 42.5p, after a disastrous production update. The price has rallied since to 69.17p.

Long-term oil price trends appear more positive. The World Bank anticipates that all three major benchmark oil prices – Brent, WTI and Dubai – will continue to increase after 2020 to reach $70 per barrel on average by 2030.

Investors will no doubt be keeping a close eye on the industry in 2020, to see if this bullish news marks the end of its bad run.

FURTHER READING: Oil price predictions for 2020 and beyond

FURTHER READING: Oman Oil Co sets sights on IPO in 2020

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image