Oil Prices Bracing For All Time High

What's even more striking is that the OPEC Basket, which is composed of heavier, lower-quality crude oils, hit an all-time peak of $73.23 (about P443.04) per barrel on July 19. The OPEC Basket usually trades at a substantial discount to the Western marker crudes, Brent and WTI, but the differentials have narrowed as thirsty consumers in the U.S. and emerging markets push the pedal close to the floor.

 
In a relatively short time, the market psychology has turned around nearly 180 degrees. Last fall, there was worry about an overhang of non-OPEC supply, compounded by concern about a drop-off in demand growth. Added to that was a seeming willingness by OPEC to pump enough to keep plenty of oil in Western tanks.