Crude oil rates $100 per barrel due to problems in OPEC winter in US

London/New York – The problems faced by the OPEC member countries in oil production and the harsh winter in the United States has caused the crude oil rates to spurt once again. Prices of Brent crude and the US WTI crude have reached $93 per barrel. Analysts have warned that the crude oil rates will touch the $100 per barrel level in the next few days.

The United States is currently facing extreme winter, and several states have been hit by excessive snowfall. The local transport systems and even electric supply have been affected along with the air services. Therefore, the possibility of a decline in US oil production is being predicted. On the other hand, OPEC, the association of the oil-producing countries and OPEC Plus, has announced only 400,000 barrels per day. As per analysts, this is insufficient to fulfil the demand for crude oil worldwide.

The increase in the crude oil rates is continuing against this background. Moreover, Brent Crude and US WTI crude were traded at above $93 per barrel in the international market. Analysts have warned that the rates will likely increase when the markets open again on Monday. The crude oil rates have increased by 20% in the very first month of 2022. It is said that the crude oil rates will cross the $100 per barrel level in the coming week if the trend continues.

Factors like consistent increase in the Russia-Ukraine tension, Houthi attacks on UAE, increasing intensity of the Yemen conflict have become responsible for the increase in crude oil rates. International financial institutions and fuel companies had already predicted that the crude oil rates would reach the level of $100 per barrel. Last year, in December, US financial institute Goldman Sachs had predicted that the crude oil rates would reach $105 per barrel at the beginning of the next year. Analysts at Rystad energy had pointed out that a crude rate of $100 per barrel could become a reality.

The crude oil rates had reached $100 per barrel between 2011 and 2014. After that, the crude oil rates started to decline. In 2016, the crude oil rates reached a record low of $26 per barrel.