Trouble is some of the OPEC nations have seen the rise of US Oil prices to $64 per barrel. The rise of violence in Libya has been the latest factors that have led to challenges of oil supply in the country. Iran which has been facing sanctions and Venezuela which is in a state of disarray has also factored for the decreased supply of oil.
In a bid to balance its budget and engineer oil prices, Saudi Arabia has also reduced the number of Oil barrels that it exports to the United States. The challenges facing the OPEC countries have resulted in the oil industry increasing the oil prices to a 5 month time high.
This is a 50% upsurge from what a barrel was coasting during the Christmas period at only $42.53 a barrel. This is despite the country experiencing an economic slowdown. Energy noted that with the escalation of conflict in Libya, there is a likelihood that the barrel will get to the $70 dollars mark before summer.
The oil price increases have also been blamed for the bullish moves that have been made by financial players. It is important to understand that last year the oil trade year experienced a bearish period but that money has been put back into it. The speculation by hedge fund managers and other financial players may have led to the dramatic increase of prices. All those players can do now is to wait for Trump’s directive on the oil spike prices.