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The Price of a Barrel of Oil Is Almost Reaching $100.00

Written by Paulo Nogueira
Published on 16/05/2018 at 10:18
Updated on 16/05/2018 at 10:30
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This Was the Value We Used to Have Before the Crisis. The Market Thinks That Oil Prices Will Reach This Average in the Coming Months

Oil is rising again, with investors already expecting US$ 80 per barrel this month. Brent crude, the international benchmark, rose nearly US$ 1 per barrel on Tuesday (05/15) to US$ 79.22, the highest price since November 2014, amid signs of a tighter oil market. The U.S. West Texas Intermediate, meanwhile, added 68 cents to $71.64 per barrel. Supply cuts led by OPEC and Russia coincided with a decline in production and exports from Venezuela due to economic and political crises and sanctions on Iran.

Venezuela’s crude oil exports, according to Kpler tanks, are on the brink of collapse, with numbers showing production below 1 million barrels per day at historic lows, external oil sales from Venezuela have fallen 40% compared to the previous year. The country’s energy situation is also bleak, as creditors of PDVSA, the state-owned oil company threatened with extinction, attempt to seize assets abroad.

A decline in Iranian oil supply is also expected with the new round of U.S. sanctions, launched now under the Trump administration, following the country’s withdrawal from the nuclear deal. And to top it off, Saudi Arabia is producing less oil than at any time since the production cut agreement took effect in early 2017.

The global energy market is preparing for a rise in oil prices, and these phenomena in the market may provide the perfect recipe for oil at US$ 100 per barrel next year, according to analysts at London-based brokerage PVM.

However, the Saudis have stated that they have stepped in to stabilize the oil market with other producers if necessary, but this has raised questions about whether the participants involved in the supply cut agreement, mainly Russia, may undo the 18-month production agreement with OPEC.

It is also important to note that despite the robust growth in U.S. shale oil fields, these barrels have not managed to help fill the gap as much as people initially anticipated, as pipeline bottlenecks and other infrastructure issues prevent oil from reaching refineries and export terminals. Reaffirming, a thesis of rising prices at least in the short term. Source: Portal do Petroleiro

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Paulo Nogueira

Eletrotécnica formado em umas das instituições de ensino técnico do país, o Instituto Federal Fluminense - IFF ( Antigo CEFET), atuei diversos anos na áreas de petróleo e gás offshore, energia e construção. Hoje com mais de 8 mil publicações em revistas e blogs online sobre o setor de energia, o foco é prover informações em tempo real do mercado de empregabilidade do Brasil, macro e micro economia e empreendedorismo. Para dúvidas, sugestões e correções, entre em contato no e-mail informe@en.clickpetroleoegas.com.br. Vale lembrar que não aceitamos currículos neste contato.

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