Early this week Brent Crude futures with delivery in November skyrocketed above $58 per barrel on the London Commodity Exchange for the first time since the beginning of 2017. The price tested the area near $58.5 per barrel, hitting the highest level since July 2015.
According to experts, a rise in oil prices was triggered by a fall in supplies and global crude oil inventories that came after the OPEC and other big oil producers agreed on output cuts.
Late November last year the OPEC members, Russia and some other countries decided to curb the oil production in order to balance the commodity market. The agreement came into effect in January 2017 and then it was extended until March 2018.
Currently, negotiations on prolonging the term of the agreement are underway. The participants of the agreement discussed this issue in mid-September in Vienna. Reportedly, the OPEC calls for involving new members in the output curbs. Particularly, Libya and Nigeria are expected to join the agreement.
