It seems that the oil prices fell on Thursday, and this led to a surge in inventories. The Brent crude oil cost $71.57 for every barrel at 0837 GMT, which is with 61 cents below their last bolt. Brent will also have a weekly loss, that will probably break its longest string of weekly gains – for a year.
The U.S West Texas Intermediate crude futures were actually down with 60 cents, at the price of $63.00 for each barrel. The U.S crude stockpiles from last week got up to their highest ever since September 2017, with 9.9 million barrels to the 470.6 million barrels, due to production that hit a record of 12.3 million barrels for each day. It seems that the U.S refineries came into the spring maintenance period, and they fear that the crude oil demand will lower and the stockpiles will continue to rise.
However, outside of the US, the oil markets remained tight after the political crisis that struck in Venezuela. The U.S sanctions against Iran are more strict – those that did not allow exemptions from May, and the Organization of the Petroleum Exporting Countries continue to withhold supply.
What does OPEC have in mind?
The energy minister from Oman, Mohammed bin Hamad al-Rumhy has stated on Wednesday that it was the goal of OPEC to extend the production cuts, that started back in January, when OPEC and its allies will meet again in June.
Even if many of the OPEC members go further with supplying cutes, the group will have to meet the demands of the market eventually. The market has seen the rise of prices with more than 30% in 2019. Russia has already sent some signs about a possible increasing output. In April, the oil output of the country fell to 11.23 billion bpd – that from 11.3 million bpd in March. They’re still above the OPEC quotas.
Meagan Kozlovs is a reporter for Debate Report. She’s worked and interned at Global News Toronto and CHECX. Megan is based in Toronto and covers issues affecting her city. In addition to her severe milk shake addiction, she’s a Netflix enthusiast, a red wine drinker, and a voracious reader.