KAMCO: Oil is the highest level since 2014 The KAMCO Investment Report on the performance of world oil markets in April 2018 stated that oil prices have been the biggest beneficiaries of a number of geopolitical factors that have affected oil markets over the past few weeks, leading to increased volatility in the oil markets, Record new levels of rise this year. The first batch of trade talks between the United States and China and their attempts to restrict the flow of goods and services between them by imposing import duties.
This resulted in a trade-like situation at first, leading to a drop in oil prices by the end of March, but successful attempts led to defusing the conflict, which had a positive impact on oil prices. On the other hand, geopolitical tensions in the Middle East have escalated to new levels since the beginning of April and have led to a wave of shocks across the oil markets. Prices rose to their highest levels since 2014 after US intervention in the region, pushing the price of Brent crude to above $ 72 a barrel. Markets are also eyeing whether the United States and the European Union will impose sanctions on Iran, with the stock expected to fall in May, potentially disrupting oil market stocks. Opec’s member states cut their production levels by 201,000 barrels per day, according to OPEC secondary sources, while the Bloomberg agency reported a decline in production rates of 170,000 barrels per day (bpd), averaging 32.04 million bpd, Lows since May 2017.
This decline is mainly due to the decline in the production of Venezuela, Libya, Algeria and Angola, while the increased production of both the UAE and Nigeria to mitigate the decline. This prompted Opec’s commitment to the cut-off agreement to a record high of 163% for the fifth straight month, according to the International Energy Agency (IEA). On the other hand, the International Energy Agency kept the forecast for oil demand for 2018 unchanged at 1.5 million barrels per day after increasing demand from OECD member countries and India, which was adjusted to reduce the demand expectations of non-members of the Organization for Economic Cooperation and Development, including In that China. According to the monthly report, the world oil supply fell by 120 thousand barrels per day in March 2018 against the background of the high level of commitment of OPEC producers, although the rise in US production has partially offset this decline. Among the latest developments, the International Energy Agency (IEA) report said that the OECD’s trade stockpile fell by 26 million barrels to 2.841 million barrels, up 30 million barrels over the five-year average, which is used to measure the efficiency of OPEC production cuts. The averages are expected to reach the mid-level in May 2018 and the expected fate of the future reduction levels will then be determined. KAMCO: Oil for the Highest Level Since 2014 Please let us know or leave a comment below.
Source: Kuwait News