The futures for crude oil fell to a new record Wednesday as fears of another global oil supply crunch continued to weigh on the markets.
But analysts said that while crude prices were still on a strong upward trend, they were not the peak of a price rout.
The price of a barrel of Brent crude oil is set to fall $4.60 a barrel from Wednesday’s high of $100.55 a barrel, according to the EIA.
It fell as much as $1.55 to $97.25.
The drop comes as U.S. production unexpectedly spiked this week, triggering a rebound in oil prices.
That rebound helped propel the U.K. into second place in the global crude oil market.
Brent crude has traded above $100 a barrel for a year and a half now.
The benchmark price has increased from $66.50 a barrel in October.
Brent prices are expected to rise even more in coming weeks.
“This is just another reminder of the continued risk of an OPEC-led crisis, and it is likely to continue to weigh down on oil prices,” said Jefferies analyst Daniel H. Sperling in a report.
“While it remains uncertain whether the U.”
shale revolution will continue to boost demand and lift prices, Brent prices could see another record low next week.
“Brent prices are still at an all-time high.
They are currently at a very, very high level,” Sperlings said.
“There is some room for crude prices to reach a new low before the market settles down a bit more.”
U.N. experts have said a possible OPEC-dominated deal could lead to the production cuts that would otherwise take place during the peak months of April and May.
If the talks fail, they could trigger a further slide into the black.
That would trigger a global economic recession.
“The price of Brent oil is currently a very high, and I think the price of oil is going to go to $100 for a while,” H. Scott Cramer, a commodities analyst with the research firm Coindesk, said on CNBC’s “Squawk Box.”
“So the oil market is going in a pretty big direction.”
Scott Cramer said that prices are currently $1,500 above where they were just before OPEC broke off its talks.
OPEC and other oil producers met on Monday in Vienna, Austria, and agreed to keep production cuts in place until the end of the year.
The next round of talks, scheduled to start next week in Kuwait, could continue for another two weeks, though there are fears of further cutbacks if talks do not move forward.
U.C.L.A. said Wednesday that it had revised its forecast for oil prices to 2.6 million barrels per day, from 2.4 million bpd.
The California-based oil giant said the forecast was based on a revised projection of oil output and a “very tight” supply picture.
It said the current forecast of a 2.8 million bdpd production increase in the next six months, up from the previous estimate of 2.2 million bds, would be well below the level needed to meet world demand.