WASHINGTON (TND) — Brent oil futures, a global oil trading benchmark, has reached nearly $95 per barrel, according to data published Monday.
The figure, which hit $94.98 Monday, marks a new high for 2023. It previously fell as low as $72 in June.
The rise is being attributed to voluntary production cuts by Saudi Arabia and Russia, the two largest OPEC+ producers. The cuts have led to decreased supply of and increased demand for the resource.
U.S. gasoline prices also jumped by 10% to $3.90 per gallon, The Guardian reported. Jet fuel prices rose in the U.S., China and Europe, along with the demand for flights.
In some markets, the price of oil has already hit $100. Nigerian crude Qua Iboe already exceeded $100 per barrel Monday, while Malaysian crude Tapis hit $101.30 last week, Reuters reported.
The sharp price increase may soon be counteracted, however, by the introduction of oil supplies from other non-OPEC+ countries. Countries such as Canada, Brazil, Argentina, Guyana and Norway each stand to produce 1.8 million barrels of oil per day, Yahoo Finance reports.
"We expect Brent to trade in a range of $90–100 over the coming months, with a year-end target of $95," UBS analyst Giovanni Staunovo told Reuters.