In recent months, oil prices have risen to levels not seen in three and a half years, since a global glut of crude sent energy markets into a tailspin in 2014. Yesterday, the benchmark oil price reached $70 a barrel for the first time since November 2014.
Why has this happened? The biggest reason is that OPEC and other major oil producers, including Russia, agreed to cut crude production by roughly 1.8 million barrels a day from late 2016 levels in an effort to eliminate a longstanding glut of global supplies. OPEC’s crude production in April fell for a third straight month to a one-year low.
Another reason: Growing demand for oil. The International Energy Agency forecasts global oil demand at 99.3 million barrels a day this year, up from 97.8 million barrels a day in 2017.