Prices for oil moved higher today, supported by strong global economic expansion outlook and OPEC-led output cuts.
Brent futures rose to $69.31 per barrel, adding 28 cents, quite near the highest of $70.37 since December 2014, the level of January 15.
U.S. WTI futures grew to $63.90 for a barrel, 33 cents hike. The peak of WTI since December 2014 took place on January 16 getting as high as $64.89.
Yesterday the IMF adjusted its forecast for global economic growth, lifting it to 3.9% for this and the next year, it is a 0.2 percentage point rise since previous revision back in October.
The demand goes up while OPEC and Russia take measures for reducing production, which they started in early 2017 and agreed to continue till the end of 2018. 2018 prospects are quite balanced throughout the year, though inventories are expected to increase in the fourth quarter, BNP Paribas bank said. It also said it had lifted 2018 forecast for oil by $10 per barrel, with WTI predicted to be around $60 and Brent – $65.
However, signals of a probable correction have been noticed. Falling refinery earnings, which started in Asia and now come to Europe and the US, due to growing feedstock prices and easily accessible fuel, indicate less orders for crude in the future.