Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Brent crude nears $70 mark as OPEC cuts help ease concerns over demand

Oil prices reached a 2019 high on Tuesday, edging over the $69 a barrel as OPEC supply cuts take their toll and concerns over demand show signs of easing.

Oil prices Source: Bloomberg

Oil prices rallied to more than $69 a barrel on Tuesday after news that more sanctions on Iran and further production disruptions in Venezuela could help deepen OPEC supply cuts.

Brent crude went as high as $69.50 a barrel on Tuesday, its highest level this year, and the most the market has seen since mid-November last year. Meanwhile, US crude rose 43 cents to $62.02.

Iran expecting more US sanctions

The US is considering applying more sanctions on Iran, even though under the current restrictions the country’s oil exports have already been halved, according to reports. Meanwhile, Venezuela, which is also under US sanctions, has battled with yet further disruptions.

‘The supply cuts have been there for a while, but Venezuela is not improving,’ said Olivier Jakob, analyst at Petromatrix told Reuters. ‘That is taking a lot of oil away from the market.’

If sanctions on Iran and Venezuela continue and become more intense in the coming months it could deepen OPEC-led supply cuts that took effect in January and may help push oil prices above $70 levels.

Healthy economic data from US and China helps buoy oil prices

Decent economic data coming out of the world’s two largest economies, the US and China, have also helped oil prices to rise in recent weeks.

Recent figures showed healthy US factory activity in March and a return to form for Chinese manufacturing, despite growing concerns about a global economic slowdown that threatens to reduce oil demand.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in September 2020.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.