Brent crude was trading at $75.76 a barrel and West Texas Intermediate was at $75.00 a barrel, amid an internal disagreement in the cartel, with the United Arab Emirates unsure about joining the agreement to add a total 2 million bpd to combined production between August and December. As more cars are on the road this holiday more than ever as people make up for lost time last year expect prices to keep on increasing. Especially if
failure to come to an agreement could mean that the group continues with current levels of production, which would mean that the market tightens even quicker. If this happens, however slim the chance, forecasts of Brent crude hitting $100 might come true. My sense is the group wants to preserve these prices. They probably don’t want to push prices much higher right now. But an unexpected increase in travel to 4th of July summer destinations would cause a dramatic increase of Brent Crude, especially with all schools returning to full sessions for the first time and thats right around the corner. Without significant increases in production by the end of the month watch for crude prices to hit the $100 mark by Labor Day weekend. Heres oil stocks that can still go up a good bit: ...