January 11, 2018
Source: the guardian (https://www.theguardian.com/business/2018/jan/10/oil-price-hits-three-year-high-petrol-prices-uk)
On Wednesday of this week, the price of Brent crude rose to $69.37 per barrel, making it the highest oil price per barrel in three years since November 2014. The RAC reported that the price of petrol in the UK had gone up by 5p per litre to 121.27p since the start of November and the price of diesel had gone up by 3p to 123.97p. The United State oil production has surged over the past year due to the high price, and the number of oil rigs in the United State has climbed to 924, which was increased by one-quarter since last year. The government has indeed predicted the highest annual average growth of oil in the history this year, from 9.3m barrels per day to 10.3m in 2017.
In November of 2017, the Organization of the Petroleum Exporting Countries (OPEC) and other big oil-producing counties including Russia had agreed to extend production curbs until the end of 2018, which in hoping to tackle a global glut of crude and keep prices buoyant. Iran’s oil minister said that the OPEC did not want the oil to cost more than $60 a barrel, such high price in the oil may not sit comfortably with the OPEC members, who fear to lose the market share to the United State shale producers.