Since hitting a four-year high of $82.55 last week Tuesday, oil prices have continued to climb with Brent Crude oil surging to $84.69 on Wednesday.
Following the spike, which is attributed to U.S. sanctions on Iran’s exports and the Organization of Petroleum Exporting Countries’ reluctance to raise oil production last week, energy experts have predicted a surge beyond the $90 mark.
This week, oil prices continued to peak with just over a month until the re-imposition of U.S. sanction Iran’s energy sector.
Speaking at an energy conference in Moscow, Saudi Arabia’s energy minister Khalid al-Falih said the country had raised its oil output to 10.7 million barrels per day and announced a further production hike in November to meet the rising crude demand, Reuters reported.
In response to the rise in oil prices, the minister said that the prices were “not based on fiscal flows of supply and demand” but were created in financial markets.
Brent crude oil is currently trading at $84.12 a barrel having seen a high of $84.45 on Monday.
U.S. sanctions on Iranian exports are set for November 4, 2018.