As more and more countries adopt emergency economic revival programs oil sees some demand building up. Traders bet on oil and it has consequences. Norwegian Brent has gone a long way from $18-something to 40.32 per barrel.
The price of a barrel of Brent oil rose to more than $ 40 a barrel on Wednesday, which is the first time in almost three months. The price is on the rise due to the expectation that the OPEC oil cartel and allies such as Russia will extend the current production restriction.
The oil producing countries will soon have to decide on production from July. In April, it was agreed to pump up about 10 million barrels less per day in May and June. Consultations are now underway on how long that production restriction will be extended. Russia and other oil countries would argue for a month, while Saudi Arabia, for example, is looking to extend it by one to three months.
Brent oil posted a plus of 1.9 percent on the London futures market on Wednesday morning at $ 40.32 a barrel. A barrel of American oil climbed 2.8 percent to $ 37.85.