LIFESTYLE - World oil prices jumped 14 percent within three days. Thus, world oil prices closed up to the highest level in 17 months at the level of 51.68 dollars per barrel on Friday (02/12/2016) local time.
Quoting CNN Money, Saturday (12/03/2016), the agreement reached members of the Organization of Petroleum Exporting Countries (OPEC) gives new wind to the price of crude oil this week. Because, finally OPEC agreed to cut oil production for the first time in 8 years.
The OPEC decision marks a significant movement OPEC price war with US shale oil. Investors looking at OPEC's decision to stop the flood of oil supply will reduce the oversupply which made oil prices plummeted.
"OPEC decided to cut very seriously. The market gained what to expect from OPEC," said Michael Wittner, global head of oil research at Societe Generale.
Earlier, doubts arose concerning the ability of OPEC to reach an agreement, which ultimately makes the price of oil fell before a meeting on Wednesday. Finally, oil prices could soar 12 percent this week. The price increase was the biggest gain since 2011.
Oil prices are perched at this time is very high when compared to their lowest point in 13 years, which is 26 dollars per barrel in February 2016 ago.
Anthony Starkey, manager of energy analysis at Bentek Energy, said crude prices could reach a range of 50 to 60 dollars per barrel in the first half of 2017.
"However, the sustainability of the price rally of course questionable because investors tend to wait and see whether OPEC is committed to the restriction of their production. OPEC has a mixed track record," said Starkey.
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