Oil prices declines from 2019 highs
Oil prices fell further from 2019 highs on Friday, but was set for a thrid straight week of gains due to supply cuts led by producer club OPEC and by U.S. sanction on Iran and Venezuela.
Brent crude futures were at $67.39 per barrel, 47 cents below their last close.
Brent hit a four-month high of $68.69 on Thursday. The benchmark has risen by just under a third since the beginning of January, when OPEC started to cut production.
U.S West Texas Intermediate (WTI) futures were at $59.54 per barrel, fell 45 cents from their last settlement. WTI marked a 2019 peak in the previous session at $60.39.
“For all the recent chatter of positive vibes and faithful oil bulls, the $70 barrier has so far proved a tough nut to crack for the European benchmark,” PVM analysts wrote.
“A sense of hesitancy has taken hold across the energy complex. Market players are waiting for a bullish catalyst to spark a decisive upside breakout.
A jump of more than 2 million barrels per day in U.S. crude oil production since early 2018 to a record 12.1 million bpd has made the United States the world’s biggest producer, ahead of Russia and Saudi Arabia.
United States is the world’s biggest producer in crude oil production, ahead of Russia and Saudi Arabia. This is due to the jump of more than 2 million barrels per day in U.S. crude oil production since early 2018 to a record 12.1 million bpd.
This has resulted in increasing exports, which have doubled over the past year to more than 3 million bpd. The International Energy Agency estimated that the United States would become a net crude oil exporter by 2021.
Beyond OPEC, oil prices have been boosted by U.S. sanctions against OPEC members Iran and Venezuela.