Brent crude oil reached a three-and-a-half-year high of US$75 (RM293.25) per barrel yesterday following the 15-month-old supply control by the Opec led by Saudi Arabia, exacerbated by expectations of further tightened supply as the United States may impose sanctions against Opec's third-largest producer, Iran.
French President Emmanuel Macron forcefully challenged numerous USA president's policies during a visit to Washington, saying an worldwide nuclear deal with Iran, which President Donald Trump has harshly criticized, was not ideal but must remain in place until a replacement is forged.
The US has until May 12 to decide whether it will leave the Iran nuclear deal and re-impose sanctions against Opec's third-largest producer, which would further tighten global supplies.
Brent, the worldwide benchmark, surged as high as $75.27 a barrel overnight - a level not seen since 2014.
Experts think there is still plenty of room left for more oil price upside.
"There will be no decision on this in OPEC's next meeting. if oil prices continue to increase, there will be no need to extend the deal", Bijan Zanganeh was quoted as saying by SHANA.
Opec's efforts to tighten markets are being led by top exporter Saudi Arabia, where state-controlled oil firm Saudi Aramco is pushing for higher prices ahead of a partial listing planned for later this year or 2019. Oil will hit the mark of $80 per barrel already in May, the news agency said.
Oil prices are likely to gain strength if OPEC and their non-OPEC partners maintain their production cuts. "No good and will not be accepted!"
"Oil prices are artificially Very High!"
"EIA should show a bigger crude oil draw, " he added. The only thing that is stopping the oil prices shooting through the roof is the fact that America's oil production has been rising. Data from the Energy Information Administration initially took traders by surprise, showing a USA crude stockpile build of 2.17 million barrels last week, larger than the 1.1-million-barrel increase reported by the American Petroleum Institute.
The API report was, however, bullish for gasoline and distillate stocks, which provided some support for prices, analysts said.
As a result, the US economy would, on balance, benefit from lower oil prices.
The upshot is that we doubt Trump will take any action to reduce oil prices. "Imagine how much money the average American would save if we busted the OPEC cartel", he said in February of 2012 when prices were $120 per barrel.
"Not many companies on Bursa Malaysia have a direct exposure to the changes in oil price".