Brent Crude Oil hit new highs for the year as Brent climbed above $75.00 a barrel a few days. In addition, West Texas Intermediate Oil hit new highs a few days before at $69.58 a barrel. Crude Oil and its related products have all continued to rise over the past year. Brent Crude Oil was trading below $50 a barrel in June of 2017. The rise from $50 to $75 represents a 50 percent increase. A 50 percent rise is not a small change, especially for a commodity that is very important to the United States economy and the global economy.
Crude oil has been on a rise as the central bank in the United States has began to raise interest rates and also reduce its balance sheet. This is an interesting situation as that sort of action should yield the opposite reaction. Will the continued trend of rising interest rates and oil price increases continue for the year? It may be best to keep an eye on Crude Oil and the 10 Year Treasury Note.
Above is a 5 year chart of Brent Crude Oil up to today's date, May 1, 2018