The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, are soaring to start 2018 and some oil market observers believe the commodity can deliver more upside.

Deadly protests in Iran, a member of the Organization of Petroleum Exporting Countries (OPEC), are bolstering oil prices to start 2018. The global market has suffered through a supply glut, but the Organization of Petroleum Exporting Countries and its allies have taken steps to rein in the oversupply. Recently, the United Arab Emirates, Saudi Arabia and Venezuela all reported lower monthly output.

“After prices were boosted by OPEC’s output curbs in 2017, the U.S. President has shifted the focus to geopolitical risks, with his pursuit of sanctions on Iran and North Korea potentially having significant consequences,” Bloomberg reports, citing a Citibank report. “That’s in addition to political disturbances in some OPEC members like Iraq and Libya that could see crude supplies decline, boosting oil to levels between $70-$80.”

Saudi Arabia projects oil revenue to jump about 80% by 2023 and expects its first budget surplus in a decade. Officials calculate rising prices and expanded output will raise income from oil sales to 801.4 riyals, or $214 billion, from 440 billion riyals this year. The kingdom is the largest OPEC producer.

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