Oil prices move within striking distance of $100 a barrel – What's next? [Video]

It's a Fact: Google searches for the phrase "How To Trade Commodities" are surging once again!

This comes as no surprise, considering the current macroeconomic backdrop is fuelling a "perfect storm" Commodities positioning the entire sector as one of the most lucrative asset classes of this year, if not this decade.

A long list of the world's most powerful Wall Street banks have described the current economic climate as "The Golden Age of Trading".

And you only have to look at the headlines to see why!

Energy prices across the board have been on a phenomenal run this quarter, breaking records and notching up fresh 2023 highs, almost on a daily basis.

WTI Crude Oil traded as high as $90.88 a barrel on Thursday, up 3% on the day. That's the highest intraday price since November 8, 2022 and whopping gain of 41% since mid-June.

Meanwhile, Brent Crude Oil rocketed above $94.63 a barrel to hit a fresh 2023 record high. Over the last two months, the world's most traded Oil benchmark has tallied up a stunning gain of over 49% from its 2023 lows of $63.64 a barrel.

And the rally might not stop there!

Oil prices have been in a solid uptrend since Saudi Arabia announced plans to extend its 1 million barrel per day production cut until the end of the year – joined by Russia with its own 300,000 barrel per day output cut.

These cuts are in addition to the 1.66 million barrels per day output reduction other members of OPEC have put in place until the end of 2024.

Elsewhere, catastrophic floods in Libya have forced authorities to close four key Oil ports and shutdown local refineries. A move which as boosted expectations of global supply scarcity – adding further bullish tailwinds to the current energy price boom.

Libya, produces over 1 million barrels of Oil per day and sends around 85% of its exports to Europe. If all that supply in Libya was to remain off the market for an extended period of time – there's no doubting that could easily send Oil prices soaring well into triple-digit territory.

Overall, the flooding in Libya, combined with the supply cuts by Saudi Arabia and Russia – are whipping up an explosive money-making storm – sending Oil prices surging to their highest level in 11 months. 

As a result, 30% of the world's highly essential Industrial Metals from Aluminium, Copper, Cobalt, Nickel, Lithium, Palladium, Platinum, Uranium, Zinc and Rare Earth metals production has been forced offline – opening the door to a major squeeze in Commodity prices ahead.

Since the beginning of this year, a long list of Wall Street banks from Goldman Sachs, JPMorgan to Bank of America have described commodities as their "preferred asset class over the next decade". In recent days, that chorus has once again become louder with Wall Street's biggest institutions, advising clients to pile back into commodities now – ready for the next leg higher!

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: