Crude oil prices once again touch $100 per barrel based on signals from

Vienna: Crude oil prices have once again gone past $100 per barrel after the Organization of the Petroleum Exporting Countries (OPEC) and other oil-producing countries signalled to cut oil production. This is coupled with looming uncertainty over the Iran nuclear deal. Analysts have warned that if OPEC Plus cuts oil production, the oil prices will touch $150 a barrel.

Last month, crude oil prices fell by 10% below $100 per barrel amid fears of a global recession and an increase in the spread of Coronavirus. This was the first instance that oil prices went below $100 per barrel since the start of the Russia-Ukraine conflict in February. Subsequently, the prices stabilized below $100 per barrel, as the oil production increased by OPEC and allied countries, setbacks to the Chinese economy and build-up of a recessionary environment.

A few days ago, the oil minister of Saudi Arabia, the leading country in OPEC, announced a cut in oil production. Saudi Minister of Energy Prince Abdulaziz bin Salman stated that the fuel-producing countries do not have enough capacity to boost production, and the condition of the fuel market is currently uncertain. The Saudi minister’s statement is believed to be a warning by OPEC to cut oil production.

On the other hand, there are indications that Iran’s nuclear deal is in its final stages; however, the uncertainty around it still looms. The supply of crude oil is likely to remain low. Against this backdrop, crude oil prices have started to rise. On Thursday, the oil traded at $101.79 per barrel. Fuel analyst Paul Sankey warned that the crude oil prices could go as high as $150 per barrel soon if OPEC acts upon its warning. Sankey pointed out that the Saudi statements show that there is no excess stock in the fuel market and this factor could result in a price hike.