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Crude Oil Hits 2-year High on Saudi Troubles

 1 min read / 

Source: NASDAQ

Crude oil prices hit over $64 a barrel, their highest level since the summer of 2015, on the back of uncertainty following Saudi Crown Prince Mohammed bin Salman’s (MBS) anti-corruption crackdown on rivals over the weekend. The wave of arrests of leading Saudi officials and businessmen comes at a time when global crude supplies are tightening after OPEC cut global supplies by 1.8m barrels per day (bpd), approximately 2% of global supply, earlier this year. Crude Oil prices have now risen over 40% since June.

Heading for $70 per Barrel Crude Oil?

The market is expecting further price rises as speculation mounts that the Saudis will push for an extension of the supply cuts till the year-end at the next OPEC meeting on November 30th. The Saudis are in favour of lowering supply to draw down inventories and boost oil prices to support next year’s proposed partial flotation of Saudi Aramco, the world’s largest oil company, which is one of MBS’s pet projects.

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