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Crude Oil October 11, 2018 01:30:09 AM

OPEC Focusing Over Further Oil Price Hike

Anil
Mathews
OilMonster Author
In 2016, OPEC nations including Russia had decided to reduce per day oil supply to 1.8 million barrels, which was initiated in January 2017.
OPEC Focusing Over Further Oil Price Hike

SEATTLE (Oil Monster): From last few months, multiple orders were given by the U.S. President Donald Trump through a tweet to increase the production and permit crude oil price hike, still, OPEC is not following the order and continues to escalate the oil prices.

According to analysts, OPEC will reduce the crude oil price for a limited period only. If they would be able to maintain sufficient supply worldwide even after the decline in Iranian exports due to U.S. sanctions, and at the grounds where the production has already been falling down in Venezuela; then they would have a great opportunity to control the crude oil prices due to monopoly.

In 2016, OPEC nations including Russia had decided to reduce per day oil supply to 1.8 million barrels, which was initiated in January 2017; as per the Journal.

According to a global media company, Forbes, OPEC has been using their power to control crude oil prices; as OPEC dominates with 40% of market share in crude oil segment.

The oil minister of Saudi Arabia, Al-Falih said that the production of crude oil would be dependent on the demand. They have the capability to produce an additional 1.5 million barrels of crude oil per day than their basic daily production, but the market does not demand more oil.

At present, Saudi Arabia feels shortage with supplies of the highly popular crude oil, Arab light might be due to a continuous decline in Iranian exports, reported by the Wall Street Journal.

Recently, Brent crude reached above $81 per barrel with prices hike of 1%, which is highest since November 2014. Regarding this, Trump said that due to monopoly, OPEC has been tearing off the whole world by hiking oil price, which is totally unfair.

Due to good relations between some Saudi leaders and Trump, they are helping Trump to isolate Iran. The leaders can’t manage to reveal their relationship with Trump, which would be a quite difficult situation for them.

 Courtesy: www.newsobserver.com


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