With production cuts, crude oil prices have been rising this year.
The U.S. crude has risen to significant highs of $60 per barrel. This is the first time it has crossed the mark in four months.
In 2019, WTI has witnessed a rally by 32 percent, while Brent has gone up by 27 percent. Though crude has witnessed a rough slide in the latter half of 2018, it has recovered this year with an increase in prices.
Sanctions imposed on Venezuela and Iran has contributed significantly to the increase in crude prices.
WTI crude has topped the $60 per barrel and later closed at $59.83 per barrel. The last time it crossed $60 per barrel was on November 12.
Crude production has been cut by 1.2 million barrels per day, which was the decision taken at the meeting held by the OPEC + countries. A meeting was planned earlier for April, but it has been canceled and production will continue at the same speed.
However, an undersupply of crude oil is expected in the market with the U.S. sanctions, which may push Brent prices to $75 per barrel, says Morgan Stanley.
Though Saudi Arabia’s Energy Minister Khalid al-Falih has shown his preference to cut crude production further to increase oil prices, Russia does not support further production cuts.
Further, crude oil production has increased in the U.S. Now, the U.S. Gulf Coast is able to export more crude oil than its imports. In February, the oil production from the U.S. has hit a high of 12.1 million barrels per day, according to the U.S. Energy Information Administration. This makes the U.S., the leading exporter of crude oil, with Russia and Saudi Arabia trailing behind.
Still, Saudi Arabia continues to be the largest exporter of crude oil, which accounts for the main income of its country. The U.S. continues to rely on Saudi Arabia and Venezuela for heavy crude.
Erik has a scientific background. He is with the team from last 7 years. He has been the go-to-guy whenever Report Truths decides to cover science-related discoveries, space explorations, research and many more. Besides being science aficionado, Erik is an internet specialist, incurable organizer and a coffee specialist.
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