Prices of oil held firm and stable, hovers near mid-2015 highs

Oil goes up

Wednesday, prices of oil held steady and stable, hovering near its mid-2015 highs capped on the previous session. The United States West Texas Intermediate crude futures were seen settling at $60.40 per barrel, which was 3 cents higher from their previous close, and an inch below the $60.70 June 2015 high settlement which was touched on Tuesday.

On the other hand, the international benchmark: Brent crude futures traded at %66.55 per barrel, which was down by 2 cents but still near the $67.29 May 2015 high which was also capped on the previous day.

These positive progress in the stance of oil prices were reinforced by strong demands and proceeding efforts by the Organization of Petroleum Exporting Countries and Russia to limit production in order to tighten and balance the market. However, there were indicators that markets had recently skipped in the last days of 2017 are trading this year. This is as the United States production is set to advance further and speculations are emerging about whether demand growth can be sustained at current levels.

In accordance to this, Ole Hansen, head of community strategy at Denmark’s Saxo Bank mentioned that it is only a matter of time before the 10 million barrel per day output target will be attained.

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