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Oil Futures Top $50 For First Time in 2016
The price of crude oil has topped $50 per barrel for the first time this year, aided by supply disruptions and increasing energy demand caused by general economic growth.
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The price of crude oil has topped $50 per barrel for the first time this year, aided by supply disruptions and increasing energy demand caused by general economic growth.
Brent Crude, the global benchmark, peaked on Thursday at $50.51 before settling at $49.40. America’s benchmark, West Texas Intermediate, hit $50.21 in intraday trading before finishing at $49.34.
Both prices have gained almost 90% from their 12-year lows last winter. Each was above $100 per barrel in mid-2014. Many analysts expect oil prices will rise to a consistent $50 per barrel in the second half of this year.
But at that price point, they say, North American oil production from shale could reignite, thereby holding down further increases. Some experts predict petroleum prices will slowly increase to about $60 per barrel by the end of 2017.
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