Producer cuts are set to increase the oil market in 2019, Argus Media

A surplus of oil will continue to push prices into the first quarter of 2019, but producer cuts will gradually increase the crude price as the year goes by, according to Argus Media, an energy manager.

That is, supply and demand will balance in the second quarter of next year, said Azlin Ahmad, editor of crude oil on Argus.

The page climbed to four-year highs in early October, the price of raw futures has crashed by more than one-third, with the recent wave of heavy sales coming at a time when the energy market and global economy are being gripped by a flurry of bearish factors.

Brent oil futures , the international benchmark portfolio was traded around $ 53.60 per barrel on Monday, representing a decline of nearly 20 percent in 201[ads1]8.

But prices will probably pick up next year as a supply savings from the Petroleum Exporting Countries Organization. power in n January January

OPEC and Allied non-OPEC oil producers including Russia agreed at the beginning of December to curb production by 1.2 million barrels per day, or more than 1 percent of global demand, with a bid for drainage tanks and rise prices.

The 15-member organization said it would reduce production by 800,000 barrels per day, while Russia and the Allied non-OPEC producers would contribute to a daily reduction of 400,000 barrels.

Argus forecasts Brent commodities trade around $ 65 a barrel in the first quarter, rising to $ 68 in the second quarter and reaching $ 70 in the third quarter. The prices will break $ 80 a barrel in the fourth quarter of 2019, progresses Ahmad.

The average Brent oil price will be below $ 70 throughout 2019, according to Argus' forecast.

-CNBCs Sam Meredith contributed to this report.

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