The price of crude oil rises before possible production drop

Ecuadornews:

Saudi Arabia and Russia agreed to increase productivity to slow the rise in the barrel of oil and offset the losses in Libya and Venezuela.

The price of oil rose this Tuesday, July 10, due to various factors due to the uncertainty caused by the possible lack of oil supply due to interruptions in oil regions.

The benchmark Brent was quoted at $ 78.07 a barrel, while the light crude West Texas Intermediate (WTI) was at $ 74.02. The various suspensions in the Middle East, Norway, Canada and threats by US President Donald Trump to reduce crude oil exports to zero have caused a new rise in black gold prices, analysts said.

Meanwhile, Saudi Arabia, a member of the Organization of Petroleum Exporting Countries (OPEC), and Russia, agreed to increase production to curb rising prices and offset production losses to Libya or Venezuela.

“The market is very volatile in that it seeks to assess the disruption caused by the sanctions against Iran, which Washington will apply after marginalizing international agreements with Tehran,” said David Madden, analyst at CMC Markets to AFP.

Washington said at the beginning of the month that since November it will sanction anyone who buys oil from Iran, which it accuses of being a factor of disturbance in the Middle East. Japan plans to stop buying Iranian crude from September if Washington does not grant exemptions, the Bloomberg news agency said, and South Korea will embark on a similar path.

“We estimate that the sanctions against Iran will make disappear from the market between a million and a million and a half barrels per day,” said analysts at the Société Générale bank. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/precio-petroleo-wti-incremento