Tuesday, 21 May 2019

Due to Trump intervenes on the market, the price of Brent oil touches its highest number


IllustrationIllustration - World oil prices again touched its highest record. And for November 2018, West Texas Intermediate (WTI) oil prices on the New York Mercantile Exchange advanced 1.57 percent to USD 76.41 per barrel. After accelerating on Thursday, October 4th 2018 at 7.21am local time, oil prices were corrected 0.43 percent to USD 76.08 per barrel.

Similar movements also occur in Brent oil prices. Brent oil prices for December 2018 delivery on ICE Futures yesterday advanced to the highest record since December 2014. Yesterday, the international benchmark oil price jumped 1.76 percent to USD 86.29 per barrel.

On Thursday, October 4th 2018, oil prices fell 0.45 percent from a new record. Today's oil prices are still higher than yesterday's position yesterday.

Yesterday, the American Petroleum Institute (API) reported an increase in US crude stockpiles by 907,000 barrels by the end of last week. Meanwhile, Barclays estimates that US oil production next year will reach 11.3 million barrels per day. Reporting from

Although there is potential for an increase in supply, traders say the oil market is still tight due to US sanctions against Iran which are in force early next month.

Russian President Vladimir Putin confirmed US President Donald Trump's assumption that oil prices were too high. At the Russian Energy Week, Putin said that oil prices soared because of US sanctions against large OPEC producers, Iran.

President Putin commented that Trump should not intervene in the oil market. He said Europe was late in holding back the impact of imposing sanctions on Iran, which was the main cause of price increases.

"We have raised the production of 400,000 barrels per day in accordance with the agreement with our partners. We can raise again between 200,000-300,000 barrels per day if needed," Putin said as quoted by Reuters.

In September, Russia's oil production reached 11.36 million barrels per day which is the highest production level in the last 30 years.

Besides Russia, Saudi Arabia intends to increase oil production next month. This month, Saudi oil production is estimated at 10.7 barrels per day.

Khalid al-Falih, the Saudi Energy Minister said, "We have communicated weekly with Russia to stabilize the oil market which continues to print the highest prices. Oil producers have added about 1 million barrels per day in the last few weeks and months."


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