- Crude Oil Hits 2019 High On Wednesday
Oil prices rose to a 2019 high on Wednesday following a report of an additional sanction on Iran and further disruption in Venezuelan crude exports.
The Brent crude oil rose to $69.73 per barrel during Asian trading session, pushing towards $70 as OPEC-led production cuts and the uncertainty surrounding supplies overshadowed another report of rising U.S oil inventories.
“The production cuts by OPEC+ are providing a nice backdrop here for higher prices and until we see U.S. production reassert itself, the easier move is higher for oil,” said Edward Moya, senior market analyst at OANDA.
U.S. West Texas Intermediate crude gained 0.4 percents to $62.84 a barrel.
Oil prices have been supported for much of 2019 by OPEC and non-OPEC agreement to lower production by 1.2 million barrels per day for 2019.
Russia pumped 11.3 million barrels per day in February, below the country’s agreed target under the accord. Suggesting OPEC+ will exceed expectations as members, except Nigeria, are pumping below agreed terms.
“We assume that OPEC crude oil production will average 30.1 million bpd in 2019 … down from 31.9 million bpd in 2018,” BNP Paribas said in a note, reducing an earlier forecast for this year by 200,000 bpd.
Mike Pence, U.S Vice President, on Tuesday said the United States would continue to pressure Venezuela’s government and those who support it with economic sanctions, saying oil prices are low enough to intensify the measures.
U.S. crude inventories rose unexpectedly last week, according to the American Petroleum Institute report released on Tuesday.
The U.S. Department of Energy will release official numbers later today.
Meanwhile, Chinese Vice Premier, Liu He, will be arriving the U.S later today to discuss trade issues that have suppressed global growth in the last two years.
The world’s two largest economies, by most experts, are expected to reach an agreement on certain issues. A different result may impact oil prices and recent global progress.