Oil prices hit a new 10-month high on Tuesday, continuing a steady climb in the wake of sustained production cuts from some of the world’s largest suppliers.
Hitting US$95 a barrel on Tuesday, benchmark Brent Crude returned to levels not seen since November of last year.
Though Brent has since eased moving into Wednesday, the new high marks production cuts by Saudi Arabia and other OPEC+ nations in a bid to inflate prices.
According to Citi Group analysts, the prospect of oil climbing to US$100 a barrel is indeed a very real one.
Though increased supply from Chinese exports or even OPEC nations themselves could ease prices, oil remains sensitive to any shocks, analysts explained in a note.
“Hurricane impacts, a cold snap, and or a spike in natural gas prices could drive a bull case for diesel,” the bank said.
Chevron boss Mike Wirth also pointed to the potential for prices to rise further, commenting on Tuesday that US$100 barrel oil “certainly” appeared to be on the cards.