On the 3rd (U.S. Eastern Time), the price of West Texas Intermediate (WTI) jumped 2.01 dollars (2.28%) from the previous day to 90.27 dollars a barrel on the New York Commercial Exchange.
It is the first time since October 2014 that WTI prices have exceeded $90 a barrel.
Brent crude also surpassed $90 a barrel last week.
Recently, oil prices have been showing a steep bullish trend due to supply disruptions and geopolitical concerns.
The policy of maintaining the increase in crude oil production of OPEC Plus (OPEC+), a consultative body of non-OPEC major oil-producing countries such as OPEC and Russia, also does not seem to quell market concerns.
The weak dollar also contributed to the surge in oil prices. The weak dollar is a favorable factor for oil prices. This is because crude oil, which is usually traded in dollars, may appear to be an attractive price for foreign investors.
The dollar index, which shows the value of the dollar against six major currencies, was traded at the 95.2 level, down 0.3% at one point.
John Kilduff of U.S. asset management firm Again Capital explained that some participants tried to sell crude oil due to the completion of the OPEC+ meeting in February and the recent sluggish economic indicators, but the weak dollar put the brakes on the selling trend.
Oil prices will eventually rise to around $100 a barrel, he added.
A growing number of market participants predict oil prices to rise to around $100 a barrel.
Ed Moya, an analyst at Oanda, said, “The crude oil market is extremely shrinking at the moment,” adding, “Even if there is a slight setback in production, oil prices will soar.
Oil prices are expected to rise to around $100 a barrel in the near future, he predicted.
