WTI surges above $75 to touch its highest level since late 2014

  • Crude oil gains traction following yesterday's modest correction.
  • WTI rises above $75 for the first time since November 2014.
  • Brent oil advances to mid-$78s.

After starting the week with a bearish gap amid US President Trump's tweets about Saudi Arabia agreeing to ramp up their oil production, crude oil prices gained traction on Tuesday and extended their recent rally with the barrel of West Texas Intermediate refreshing its multi-year high at $7527. As of writing, the barrel of WTI was trading at $74.80, adding 1.2% on the day and the barrel of Brent was up 1.5% at $78.50.

Earlier today, Morgan Stanley published a report stating that risks to crude oil prices were firmly skewed to the upside due to supply disruptions from Iran, Angola, and Libya. The report also showed that the bank raised its Brent forecast by $7.5 to $85.

Libya's National Oil Corporation declared 'force majeure' on Tuesday, pointing out to a supply reduction of approximately 850,000 barrels per day as Zueitina and Hariga ports stop the activity.

Furthermore, citing a recently published statement from Saudi Arabia's energy ministry, Reuters reported that the Saudi Arabian and Russian energy ministers agreed to continue close coordination in the interest of producers, consumers and the global economy.

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