Oil Prices Have Stabilized In Past Six Months
Currently, U.S. crude has maintained a price between the range of $50-$60 during the last six months. Additionally, this range of pricing would put oil value at its peak performance in the past three years.
Other industries consistently rely on oil. For example transportation and shipping industries need oil to carry out its operations and deliver its economic output. Consequently, oil prices have usually been relied on by investors as benchmark in evaluating the health of the economy.
The confirmation that progress has been made in working towards a U.S.-China trade deal has been credited as a reason towards hope that the global economy is set to recover and grow.
Stabilizing oil prices are also coming at a time when Saudi Arabia’s oil company is set to make its initial public offering. Aramco is hopeful that it will achieve a valuation in the range of $1.6 trillion and $1.7 trillion.
Despite stabilizing prices, the members of OPEC are expected to make cuts to output in order to continue strengthening prices.