Concerns over supplies drove oil prices up 3% to a 9-week high

The oil prices have seen an all-time high in the last nine weeks, marking a growth of 3% in the market rates. There are several factors that are playing a key role in driving this sudden rise in market prices. The primary reason is the growing concerns about the oil availability in the market, due to which investors started buying the commodity to make money.

Major investors such as Brent futures had marked the prices around $78.47 per barrel, which is the highest since May 1, whereas the U.S. West Texas Intermediate had settled for $73.86 per barrel of oil which is marked as the highest since May 24.

Along with that, the two major oil-producing countries, namely, Russia and Saudi Arabia, decided to trim off the production rate, which led to set a market belief in the unavailability of oil commodities in the future. Moreover, the direct connection with the dropping of the U.S. dollar rates to their lowest in the last two weeks has made the oil prices go cheaper, making it easy for investors to buy the same on a huge scale.

In addition to that, future concerns like inflations and ongoing conflicts between countries can affect the price ranges of certain market commodities and their demand rates. The U.S. Federal Reserve is showing indications to increase interest rates, which would have an impact on the overall economy, controlling it to slow down and reduce the demand for oil in the global market.

According to Procurement Resource, the oil rates have witnessed the highest point marking around 3% of growth in the last nine weeks. The rates are increasing due to the growing market concerns about the availability of the commodity, while the major countries have decreased the oil production rate. The major investors had started investing and buying the resource in bulk, which ultimately allowed the price growth in the global market.