Oil Price Today Drop As OPEC Weigh Deficit Of US Sanctions on Iran
April 30, 2019 | Tuesday
On Tuesday, oil prices drop due to expectations on the rising output on major producers. That includes production output coming from the United States and OPEC. As a result, it offsets major shortfall estimation from U.S. sanctions to Iran. Moreover, according to analysts, the market stayed firm.
Meanwhile, the Brent crude futures went down to $71.86 a barrel during 01:03 GMT. Down by 18 cents at about 0.3 percent compared to the previous close.
The United States West Texas Intermediate (WTI) futures went down to $63.42 a barrel. Down by 8 cents compared to its last close.
Between the months of January and April, the oil prices fleet at around 40 percent. Those fleeting months were mostly due to the ongoing supply cuts started by the Middle East-dominating producer club called the Organization of the Petroleum Exporting Countries (OPEC). That with the strong sanctions by the United States on Venezuela and Iran producers.
However, during late last week, the prices have gone downward. That occurs upon the U.S. President Donald Trump demands OPEX and its de-facto leader, Saudi Arabia to raise output in order to meet the supply deficit mainly driven by the Iran Sanctions.
Elsewhere, according to Stephen Innes, head of trading SPI Asset Management, OPEC should "avoid at all cost oil prices" within the level. He added that it was OPEC's "best interest" to sustain oil prices.
Meanwhile, according to American Bank Merrill Lynch, Iran's oil production is to fall down to "1.9 million barrels per day in 2019." That from 3.6 million barrels a day. It will happen as U.S. sanctions implemented, and waivers expire according to the American Bank.
The bank also expects "nearly balanced market in 2019." That with OPEC and US production output rises.
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