Industry commentators remain bullish about the outlook for oil, but warn if prices shoot too high, they could trigger a recession in the US.
Solid emerging market demand, tightening supply and rising geopolitical tensions have sent prices soaring over the past year, with Brent Crude shooting up over 75% from the year lows seen in June 2017 to break through $80 a barrel in mid May for the first time since November 2014.
Since November 2016, the Organisation of the Petroleum Exporting Countries (OPEC), joined by non-OPEC nations led by Russia, has been on a mission to stabilise prices following its decision to flood the market in 2014.
At an OPEC meeting in November last year, the cartel agreed with non-OPEC countries to extend its production cuts of 1.8 million barrels per day (bpd) to the end of 2018.
This, combined with rising geopolitical tensions between the US and Iran, has helped drive the significant rise in oil prices.
According to May's Bank of America Merrill Lynch Fund Manager Survey, allocations to commodities stayed at a net 6% overweight, the highest since April 2012 when West Texas Intermediate (WTI) was trading at $105 a barrel.
But questions remain as to whether Brent Crude will be able to break through the symbolic $100 a barrel mark from this point due to the ongoing impact of US shale being produced at rapid rates.
The International Energy Agency in January described the US as the "undisputed oil and gas producer in the world over the next several decades".
Russian energy minister Alexander Novak also met with his Saudi counterpart Khalid Al-Falih on 25 May to discuss the possibility of increasing production by one million bpd, with concerns around oil prices running too far, according to Reuters.
Commenting on this development, Jonathan Waghorn, manager of the $292m Guinness Global Energy fund, said: "If prices go too high then OPEC can finish the quota system and put the barrels back into the market."
Despite these risks to the downside however, Jordan Hiscott, chief trader at ayondo markets, said the US's sanctions in Iran alongside the "turmoil" in Venezuela, one of the world's leading exporters, could drive oil prices over $100 a barrel by next April.
Earlier this month, US President Trump withdrew from the Iran nuclear deal and subsequently imposed sanctions on the nation, which Hiscott said would naturally have a big impact on its oil exports.
"Geopolitical tensions come front and centre again," he said. "A plethora of supply issues compounded with instability in the Middle East [has moved oil higher].
"In addition, Venezuela, confirmed as having the world's largest oil reserves, is in turmoil and this shows no sign of abating.
"It is likely it could be over $100 a year from now," he continued.
"This is on the basis of the unpredictable nature of the disruption from key suppliers and the seriousness of what could arguably be a proxy war in the Middle East, in the form of Syria, from both the US and Russia, backing its respective allies and interests."
Added to MSCI Emerging Markets index
Carbon tool will be rolled out to all its fund managers
Everyone should be held to account
TER of 0.55%
Struggled to attract new investment