Oil prices rose to their highest level this year on Wednesday. This continues the recent advance, after a significant dip in March.
The price of a barrel of American WTI oil (of 159 liters) rose more than 2 percent to 83.25 dollars (75.77 euros). Brent oil, the benchmark for oil from Europe and the Middle East, became 1.9 percent more expensive and cost 87.26 dollars (79.42 euros) per barrel.
The price is mainly driven by the production restrictions of oil cartel OPEC +. Concerns about an economic recession in the United States have also receded somewhat into the background.
In March, the oil price fell to the lowest level in fifteen months because of the unrest on the stock markets. This was due to the problems in the banking sector. To prop up prices, oil cartel OPEC+ has decided to further cut production. Russia has also reduced oil exports.
A significant increase in demand from China is expected. This is due to the reopening of the economy in the country, after the strict corona policy has been scrapped.
Prices at the pump are also rising
Furthermore, it appeared on Wednesday that inflation in the US has weakened. As a result, the US central bank can slow down in raising interest rates. This in turn is favorable for oil demand because higher interest rates cause economic headwinds.
Prices at the pump are also rising. Last week, the Dutch recommended price for 1 liter of petrol rose again to above 2 euros, according to consumer collective UnitedConsumers.
