January 11, 2018Kenny ZhengNews 1Source: the guardian (https://www.theguardian.com/business/2018/jan/10/oil-price-hits-three-year-high-petrol-prices-uk) On Wednesday ofthis week, the price of Brent crude rose to $69.37 per barrel, making it thehighest oil price per barrel in three years since November 2014. The RAC reportedthat the price of petrol in the UK had gone up by 5p per litre to 121.

27p sincethe start of November and the price of diesel had gone up by 3p to 123.97p. TheUnited State oil production has surged over the past year due to the highprice, and the number of oil rigs in the United State has climbed to 924, thenumber was increased by one-quarter since last year. The government has indeedpredicted the highest annual average growth of oil in the history this year,from 9.

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3m barrels per day to 10.3m in 2017.In November of2017, the Organization of the Petroleum Exporting Countries (OPEC) and otherbig oil-producing counties including Russia had agreed to extend productioncurbs until the end of 2018, which in hoping to tackle a global glut of crudeand keep prices buoyant.

Iran’s oil minister said that the OPEC did not wantthe oil to cost more than $60 a barrel, such high price in the oil may not sitcomfortably with the OPEC members, who fear to lose the market share to theUnited State shale producers.