Oil Reaches New Highs

Oil prices reached the highest in 5 weeks on Wednesday. Brent crude hit $48.74 per barrel and West Texas Intermediate reached $46.16 per barrel. Heavy oil losses in Nigeria due to military attacks reduced supplies by 700,000 bbl per day, causing the market to rise. The market gains were attributed to investor optimism that oversupply is beginning to check. Venezuela is on track to have oil production decline to its lowest rate in 14 years. Venezuela holds the world’s largest crude oil reserves, but years of under investment in infrastructure, and bad management as crippled the industry.