The oil market will be shaped by three major factors in 2023. The price of U.S. Crude is on course to reach its highest level in the year due to two of these factors.
Saudi Arabia and Russia have cut production, while the resilient American economy has pushed the market to its limit. These pressures on demand and supply have led to a rally that has lasted for weeks, despite the fact that China's malaise is intensifying.
Recently, benchmark U.S. crude traded for more than $84 per barrel. This is about 25% above its level of June 27. Dow Jones Market Data reports that this would be the highest settlement value since November 16, 2016.