Middle East political tensions push oil prices higher

By March 20, 2018Industry News

Oil futures are gaining gains during European trading as a result of political tensions in the Middle East, where the United States may re-impose sanctions on Iran, as well as current tensions between Saudi Arabia and Iran.

The International Energy Agency (IEA) said global oil supplies increased in February by 700,000 bpd from last year to 97.9 million bpd.
The agency also said supplies from outside the Organization of the Petroleum Exporting Countries (OPEC), led by the United States, would increase to 1.8 million bpd this year against an increase of 760,000 bpd last year.

US crude rose by 0.97% to reach $ 62.37 a barrel. US crude opened today at $ 62.18, recording a high of $ 62.38 and a low of $ 61.18.

Brent crude was the most active at $ 66.05, recording a high of $ 66.75 and a low of $ 66.09. Brent crude was up 0.77%.

Over the course of last week, oil prices rose slightly by 0.3%, the second weekly gain in a row, after the impact of expectations of rising global demand, overshadowed supply in the United States.

Baker Hughes Oil Services announced on Friday that drilling and drilling platforms in the United States were up by 4 platforms, a seventh weekly increase in two months, bringing the total currently operating platforms to 800, the highest level since April 2015.

US production has risen 21 percent since mid-2016, surpassing Saudi Arabia’s steady 9.9 million barrels per day (bpd) output, approaching production of Russia’s top oil producer at 10.9 million bpd.