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The price of oil cut by OPEC will be the biggest increase in January.

iconFeb 1, 2019 07:32

SMM2, June 1: according to Bloomberg, oil prices are heading for their biggest rise in January in at least 36 years, with data showing that OPEC production cuts are beginning to take effect, while the more moderate Federal Reserve (Federal Reserve) policy has boosted the market. Improved growth prospects.

After plummeting nearly 40% in the last quarter of 2018, the new York crude benchmark has rebounded this year. The fall in oil prices prompted the Organization of Petroleum Exporting countries (Organization of Petroleum Exporting Countries,) and its allies to start curbing oil production. If the Venezuelan crisis worsens, it is likely to further restrict supply, and the ability of the United States and China to resolve trade differences remains the key to the demand outlook.

Tamas Varga, an analyst at PVM oil Associates, wrote in an email report that the US sanctions against Venezuela were "de facto oil embargoes" and that "there is no other way but to support prices".

West Texas Intermediate crude for March delivery on the New York Mercantile Exchange fell 9 cents to $54.14 a barrel at 10:51 London time. It rose 92 cents to $54.23 on Wednesday, up $8.70 so far in January.

Brent crude for March delivery on the London ICE European Exchange rose 28 cents to $61.93 a barrel. Futures prices are up 15% this month, on track for the biggest increase since April 2016. The more active April contract rose 23 cents to $61.77. The global benchmark crude oil price represents a premium of $7.76 to West Texas Intermediate crude.

Production reduction:

Saudi Arabia sends the least amount of oil to the United States every week in about 15 months, according to data released Wednesday by the U.S. Energy Information Administration (U.S. Energy Information Administration), the latest evidence that OPEC and coalition production cuts affect the market. Under a plan agreed in December, OPEC and its allies will cut production by 1.2 million barrels a day from October levels.

Mr Novak quoted preliminary data as saying that Russia's average daily oil production this month was 50, 000 barrels less than in October. The country has pledged to gradually reduce production by 228000 barrels a day this quarter and maintain that ceiling until the end of June.

European stocks rose Thursday after the Federal Open Market Committee said it would be patient in deciding on appropriate measures to adjust the target range of the federal funds rate in the future.

Meanwhile, high-level trade talks between the United States and China continued for a second day Thursday in Washington. While a breakthrough agreement is unlikely to be reached in the talks, the White House said it would issue a concluding statement on its progress on core issues.

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