Oil Price Today Drop As US Hits New Production Record
May 2, 2019 | Thursday
The oil prices on Thursday drops as the United States crude oil production hits a new record. That result in a price rollback within its stockpiles.
Meanwhile, outside the United States, oil markets still tight as all Iran's exemption from the U.S. expire. Also, there political crisis occurring in Venezuela increases and at the same time, OPEC still withholds oil supply.
On international benchmark, spot Brent crude was amounting to $72.09 a barrel during 00:32 GMT. It dropped 9 cents at about 0.1 percent compared to its last close.
The U.S. West Texas Intermediate (WTI) crude futures also decrease by 2 cents, then amounting to $63.58 a barrel, dropping about 0.5 percent compared to its previous session.
According to ANZ bank, the oil prices notably drops mostly because of stockpiles in the United States increases at its "highest level since 2017." The increase in crude oil production in the United States could create fears against crude oil demands, getting softer as their stockpile record continues to increase.
According to Energy Information Administration (EIA), just last week, the U.S. crude increases reaching its highest since last year, September. The production output jumped to 9.9 million barrels. Its production sets a new record high at 12.3 million barrels a day as its refining activities drop.
Outside the United States, the oil markets stayed tense surrounded by the political crisis within Venezuela. In addition, the United States sanctions to Iran which will allow no exemption from May. Also, taking into consideration the ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).
On Wednesday, Mohammed bin Hamad al-Rumhy, Oman's energy minister said that OPEC aims to extend its cuts in which started during January and to talk about in their next meeting in June.
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