Price of oil in world market biggest since 2014

Due to a reduction in the balance between the supply and the demand, the prices of oil in the world market have reached the three-year maximum.

Barrel price in the London market rose by 3.3% to USD 69.87, whereas an increase by 4.7% to USD 64.30 took place in the US market. These are the highest prices since the end of 2014.

OPEC and certain producers outside the cartel, including Russia, are trying to balance this out by reducing the production. Their agreement on a decrease of the production by 1.8 million barrels a day will no doubt last until September, maybe even until the end of the current year.

Russian Minister of Energy Alexander Novak said that a decision on this was to be made soon and pointed out that the market surplus was decreasing, but that the supply and the demand remained unbalanced.

Another factor contributing to the price of oil is the growth of the biggest world economies, which should stimulate a stronger demand for “the black gold”.

Furthermore, the production in the USA has dropped by 290,000 a day to 9.5 million barrels, the government data shows. Analysts expected the limit of 10 million barrels to be broken, which would have brought the production closer to the level maintained only by Russia and Saudi Arabia at the moment.

OPEC

Ministry of Energy of Russia

price of oil

price of barrel of oil

production of oil

Alexander Novak