The Brent crude oil prices in the North Sea rose to three and a half years at the InterContinental Exchange (ICE) London subscription. On Tuesday night, the price per barrel peaked at the top of the day, at $ 80.38, from November 2014 to the highest level.
Brent’s price for the first time on May 17 was $ 80 more than in November 2014. Oil prices are pushed up by the collapse of Venezuelan production and the fact that Donald Trump signed a presidential decree at the beginning of the week, in which he imposed new economic sanctions on the Latin American country.
A price increase factor is the US’s threat of stricter sanctions against Iran than ever before. Iran currently exports about 2.4 million barrels of crude oil per day. According to analysts, if Washington tightens, 400,000 barrels of Iranian oil worth 1 million barrels a day can fall.
This is further helped by China’s growing oil imports – the Asian country had surpassed last year in the United States – according to recent data, China has reached 39.46 million metric tonnes a month in April.
Experts have pointed out, however, that oil prices above $ 80 reinforce the risk of global oil demand falling next year. Observers say that the 20 percent increase in oil prices – as it has been since the beginning of the year – could lead to a drop in the demand of industrialized countries by 1 million barrels a day. The decline in demand will lead to a drop in oil prices.
At the same time, the OPEC countries may decide to increase oil release, OPEC members in the Persian Gulf lead a series of talks where participants can determine how much per-barrel production should be increased and how it is distributed the member states.
Brent’s crude oil price per barrel dropped to $ 78.97 this morning.
Russia-led oil exporting countries and non-OPEC producers have agreed to reduce production by the end of 2018 to cut global oil stocks by about 1.8 million barrels.