Crude Oil Prices To Hit $75 A Barrel In 2018? | Malcy’s Blog
The price of Brent crude for the first time since the beginning of the year exceeded $ 75 per barrel
The upcoming tightening of sanctions against Iran and the suspension of the export of some of Russian oil contributed to the rise in prices.
The price of Brent crude oil on Thursday for the first time this year exceeded $ 75 per barrel. This happened against the backdrop of the suspension of the export of certain types of Russian oil to Europe due to quality claims, as well as toughening of US sanctions against Iran..
By 11.56 GMT, Brent futures rose 67 cents to $ 75.24 a barrel. Earlier, the price reached $ 75.60 per barrel, which is the highest since October 31, 2018.
West Texas Intermediate crude rises 25 cents to $ 66.14 a barrel.
Poland and Germany have suspended imports of Russian crude oil via the Druzhba pipeline due to unsatisfactory quality. The Czech Republic has also suspended purchases, according to trading sources..
The pipeline has a capacity of up to 1 million barrels per day, which is 1 percent of the global demand for crude oil. According to sources and Reuters estimates, the flow has decreased by about 700,000 barrels per day..
US attempts to nullify Iranian oil exports also helped drive up prices.
This week, Washington announced the lifting of all sanctions exemptions against Iran, the third largest oil producer among OPEC countries. The US is demanding that all countries stop importing oil from Iran starting in May. Otherwise, they face sanctions from Washington..
Meanwhile, OPEC has been cutting production since the beginning of the year in an attempt to stimulate price increases..
However, as Brian Hook, the US special envoy for Iran and adviser to the secretary of state, noted on Thursday, “there is enough supply in the market to soften this transition and keep prices stable.”.
Rystad Energy Consulting Says Saudi Arabia And Its Key Allies May Make Up For Iranian Oil Loss.
“Saudi Arabia and several of its allies have more to offer than will be lost due to the cessation of Iranian exports,” said Bjornar Tonhaugen, head of oil market research at Rystad. “Since October 2018, Saudi Arabia, Russia, the UAE and Iraq have reduced production by 1.3 million barrels per day, which is more than enough to offset additional losses.”.
Production in the United States has grown by more than 2 million barrels per day since the beginning of 2018, reaching a record 12.2 million barrels per day and placing the United States in the first place among the oil-producing countries. Now the US is ahead of Russia and Saudi Arabia.
In part due to rising production volumes in the country, U.S. oil inventories reached 460.63 million barrels, the highest since October 2017, the Energy Information Administration said Wednesday..