Crude oil prices have steadily risen in 2019 following last year’s sharp drop in the fourth quarter. West Texas Intermediate crude prices approached $65/barrel over the weekend, up from roughly $47/barrel at year end. While the increase in prices has coincided with improving expectations for global growth, further upside could have a negative impact on economic growth.
Should the U.S. decide to no longer allow for an exclusion on the purchase of Iranian crude, tension and concerns in the oil markets will rise. Additionally, instability in Venezuela and Libya is a concern. I will be keeping an eye on the $70/barrel level as a key technical level for prices.
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