Related: How to Hedge Against Further Falling Oil prices

Other factors contributing to oil’s surge this year was the U.S. exploring the possibility of tapping into their emergency reserves to stymie disruptions in oil supply, notably the slashing of Iranian oil imports. The U.S. is currently pumping oil at record levels of around 11 million barrels per day.

“Oil demand growth is expected to rise by 1.64 million barrels a day to 98.83 million barrels a day this year, according to OPEC estimates. It should rise again to reach 100.26 million barrels a day in 2019,” reports CNBC.

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