Oil prices moved above $90 U.S. a barrel for the first time since 2014 as winter weather in the U.S. threatened to shutdown some production and geopolitical tensions remain high.
Oil traders question whether the OPEC+ coalition will be able to meet their quotas in full after agreeing to add supply to the market, while extreme cold in Texas’ Permian Basin is curtailing some U.S. production.
Geopolitical fears also continue to send oil prices higher as Russia-Ukraine tensions ratchet higher and drone strikes continue in the Middle East.
Crude oil is now heading for a seventh weekly gain, with banks including Goldman Sachs (GS) forecasting that oil will reach $100 U.S. a barrel in coming months. Oil’s rally poses a challenge for consuming nations and central banks as they try to lower inflation while supporting global growth.
WTI crude oil for March delivery rose $2.01 U.S. to settle at $90.27 U.S. a barrel in New York.
Brent crude oil for April settlement gained $1.64 U.S. to settle at $91.11 U.S. a barrel.
