The price of the Brent quality oil barrel, a reference for Europe, has surpassed the 80 dollars barrier for the first time since November 2014, reaching a revaluation of almost 20% so far this year. Specifically, the price of the reference barrel of crude oil in the Old Continent reached 80.18 dollars, compared to 79.28 dollars at the end of Wednesday, its highest cost since November 2014.
Thus, so far this year the price of a barrel of Brent oil has risen by 19.9% compared to the $66.87 marked at the end of 2017. Texas crude oil, a benchmark for the US, was paid at 72.30 dollars per barrel, its highest unit cost since 28 November last year, compared to 71.49 dollars at the end of yesterday’s session.
The importance of oil in economics
In its latest monthly bulletin, the International Energy Agency (IEA) warned that the rise in oil prices is likely to have an impact on the development of world demand for crude oil. Thus, the agency attached to the Organisation for Economic Co-operation and Development (OECD) forecasts that world oil demand will grow this year by 1.4 million barrels per day (mb/d), which means a reduction of 40,000 barrels per day compared to its previous forecast, to a global consumption of 99.2 mb/d.
However, a Reuters survey of 11 analysts showed that Brent oil prices would average $71.22 per barrel this year and $71.26 per barrel in 2019, a sharp increase compared to the levels of $67.40 and $66.39 per barrel forecast in the April survey. The Brent has averaged around $69 per barrel this year, up to $80 this day.
On Thursday, the Iranian regime signed an agreement with a British consortium to develop an oil field in the south of the country, according to the Iranian state television station, in what would be the first contract between Tehran and a key U.S. ally since Washington announced last week its withdrawal from the nuclear agreement.