Sunday as Saudi Arabia met in Jiddah, said that it will pump more crude oil in the market if it was needed this year. Already Saudi had announced in May a rise of 300,000 barrels per day and before this meeting it added another 200,000 barrels per day in July, bringing the total daily output production to 9.7 million barrels. As the U.S and other nations had wished for a higher production from Saudi, the feel that supply has not yet met demand while prices still remained high in the market. Friday the contract closed as it gained $2.02 before closing at $129.07 while recording a high of $129.60 per barrel and a low of $126.67 per barrel.
Black gold prices today remained inclining despite the fact that Saudi had agreed on pumping more oil due to militants blowing up an oil pipeline in Nigeria. Since many nations felt that Saudi hiking output by 9.7 million is not enough and the tensions in Nigeria only helped the soaring in prices we are seeing today as supply and demand factors continue to overcome the markets. Today August contract opened at $134.80 while recording a high of $136.60 per barrel and a low of $134.31 per barrel.
In the crude markets prices will remain high as fears of insufficient supply rule the markets while tensions in the middle easy between Israel and Iran as Israel is threatening to attack the Iranian nuclear facilities is only supporting the spike in prices. Also starting today workers in Nigerian oil facilities are striking at the Chevron Corp. adding more woes to the lack of supply currently in the markets.