Crude oil prices hit an all time high near $120 a barrel after a strike in a refinery caused a pipeline system to shut down in UK. The pipeline usually delivers a third of Britain's North Sea oil to refineries which is more than 700,000 barrels of oil per day.
In addition to that, 5 police officers were killed by unknown gunmen in oil-rich southern Nigeria which only added to supply fears of consumers while boosting crude oil prices. Friday, the contract gained $2.46 as it closed at $118.52 while recording a high of $119.55 per barrel and a low of $114.51 per barrel.
Today oil so far recorded an all time high of $119.93 per barrel as the output in Nigeria declined by 50% since April 25 due to what we mentioned above, which is adding to economies inflationary pressure as oil prices continue to rise.
Oil prices rally is also supported by the weakening dollar in which investors enter crude oil markets as a hedge against inflation and the falling greenback as it becomes cheaper for foreign investors as they hold a stronger currency. Today, the market opened at $118.94 which is the lowest set until now.
Seeing that there are geopolitical tensions, this will only cause oil prices to continue forming bullish waves. By this investors are assured as they sit around and make profits, while consumers hope this will soon end as the summer season is coming just around the corner where massive demand on gasoline is seen with the known driving season.