Oil continues to record new peaks, and today’s day was no exception to the positive series. The yield cuts from OPEC and Russia are helping, but the price has hit a little below $ 60 a barrel, a level that is yet to be tested this year.
Western Texas Intermediate (WTI) futures – the state’s vendor – rose today to $ 59.87 a barrel, but later the price dropped.
OPEC + helped raise the price that followed after the agreement reached on Sunday between OPEC and the Cartel allies for a further reduction in quota yields agreed in December.
At their meeting in Baku-Saudi Arabia, they expressed their intention to maintain low production throughout the year to rebalance the oil market. The oil producers group agrees that the current mining policy should be continued. OPEC + is currently successfully implementing the new policy, which is already reflected in the price.
Despite the main bullish mood, there are signs of a slight divide between OPEC and Russia. Russia has refused to engage in a reduction in yields beyond the first half of the year. Their response to the pruning is late with that of Saudi Arabia, which has taken over the burden of balancing the market.
But the slowdown in the global economy, partly in the wake of the US-China trade war, could lead to a weakening of the world’s oil appetite, which would lower prices.
Source: The Wall Street Journal
Trader Martin Nikolov