Oil price jumps by 3%

Today the price for oil increased by 3% as crude was up by $1.30 to $52 a barrel, its higherst level since July last year. The increase comes at a time when American crude stockpiles have decreased by 5.2 million barrels a week. The drop comes as a surprise as many in the market predicted stockpiles to rise by 2.1 million barrels. The decrease in stockpiles can be explained by a pipeline outage that is responsible for delivering more than 500,000 barrels per day to a storage in Oklahoma. Over the last few years big oil producers have been relentlessly pumping oil in an effort to defend their market share, which lead to an over-saturated market and lowering the price for oil. Last month Opec members agreed in a meeting in Algiers to cut oil production.