Brent Oil Hits $97/Barrel, Eyes the $100 Milestone
In a market still buzzing from earlier cuts by Saudi Arabia and Russia, Brent crude leapt above $97 a barrel on Thursday—its highest price in nearly a year. The cluster of price moves has traders and economists alike staring at the looming $100 threshold.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, mused that “tight supplies are fueling the rise in oil prices, reigniting worries about inflation and the need for interest rates to stay higher for longer.” She added that the “fast drawdown of US crude stocks” combined with ongoing demand for transportation, power and petrochemicals is keeping the upward momentum alive.
Russ Mould, investment director at AJ Bell, echoed the sentiment, pointing out how “another leg up in oil prices has added to the market worries about sticky inflation.” He warned that “high energy costs could be passed on by companies, leading to higher prices for consumers.”
With economies in Europe slowing and China still struggling, it might seem that the world is taking a breath. Yet, the appetite for oil remains relentless, pushing prices toward that psychologically powerful $100 mark.
- Oil price surged to $97 a barrel on Thursday.
- Price is inching toward the $100 milestone.
- Production cuts by Saudi Arabia and Russia are pushing the market up.
- US crude stocks are diminishing faster than expected.
- Inflation concerns continue to raise the possibility of prolonged higher interest rates.
- Higher oil costs could trickle down to consumers via higher product prices.
Stay tuned—oil’s roller coaster is far from over, and the $100 summit is just around the corner.
