Brent crude oil prices climbed to $105 a barrel on Thursday, marking their highest level since May 25, 2026. Chinese buying and a sharp decline in Saudi Arabia’s oil output also contributed to the surge.
Brent crude futures rose 2.63%.
The latest rally has pushed Brent prices about 30% higher from the lows recorded in early August. Oil prices have been reacting to the failure of a permanent agreement between the United States and Iran to cease attacks, with fighting resuming later in the month.
Saudi Arabia’s oil production has fallen to its lowest level this year after Iran-backed Houthi rebels in Yemen threatened shipments from the kingdom’s west coast.
Brent crude spot prices averaged around $85 per barrel in June and about $83 in July. The price hovered at nearly $91 in August.
According to a report published by the oil cartel, Saudi Arabia told OPEC that it produced 6.2 million barrels a day in August.
This was the lowest monthly production figure in 2026 and represented a 23% decline from July.
Saudi Arabia has further informed OPEC that its oil production dropped again, reaching its lowest level since 1990.
As crude oil prices continue to rise, experts are assessing whether oil could cross $150 a barrel and what impact such a move could have.
Peter McGuire, Oil Expert & CEO-Australia, Trading.com, told Times Now Digital, "I don't think oil prices will hit 150 dollars per barrel at the moment. We will have to wait and watch. There's nothing driving prices up besides little bit of fear and long positions."
Global Commentator Ajay Bagga said, "there will be massive demand destruction if price rises to $120-150. Economies will tip into recession and many downstream businesses will become unviable. Governments around the world already have a fiscal deficit problem. If energy subsidies shoot up or if recession strikes due to a pass through of prices, government revenues will shrink at the exactly wrong time when fiscal and monetary counter cyclical stimulus is needed."
