Crude prices push past $48-a-barrel
During early Tuesday’s Asia trade, crude prices managed to gain further traction driven by ongoing supply outages as well as bullish outlook the global market has dragged into a deficit.
However, many experts expect that profit-taking as well as lack of confidence in the soar will probably hinder crude prices from getting higher.
In New York, June delivery sweet, light crude futures soared 1%, trading at $48.18, while July Brent crude futures gained 0.5%, being worth $49.30 per barrel.
For almost two years global crude production has drastically outperformed demand, bringing crude prices as low as $26 a barrel earlier this year. However, recent output disruptions in Libya, Nigeria and Canada have helped to chip away some of this nasty oversupply.
The growing intensity in supply-side disruptions in the crude market should back up crude prices in the short term.
While crude prices have surged 85% since dropping to its 13-year minimum in February, the lingering low prices have also made it unprofitable for many upstream crude producers to keeping pumping this commodity, thus sending American shale production on a steady decline in recent months.