Brent Crude Oil Jumped at 26-Month Highs; Japan PM Called a Snap General Election

The Brent crude oil lifted at 26-month highs and locked our target at $57.40, following evidence that production cuts work. Euro declined against majors as Angela Merkel won her fourth term as Chancellor. Meanwhile, Japanese PM Shinzo Abe called a snap general election.
Oil Record Highs as OPEC Production Cuts Have Positive Results
The crude oil prices jumped to the upside on Monday marking significant high levels. The Brent crude oil reached its highest level since 2015 at $58.85, while WTI crude oil rose to a five-month high at $52.48 on evidence that OPEC’s and Russia’s effort to reduce the global oil oversupply started to show positive results. Thus, as the plan works, it is very likely the oil production cuts to be extended, adding confidence to oil investors that are pushing the price higher.
It’s worth to mention that OPEC and other non-OPEC oil producer countries, including Russia, reached an agreement in late 2016 to limit oil production to 1.8 million barrels a day, in order to decrease the global oversupply, lifting oil’s value. In May, the deal extended until March 2018.

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