Oil prices fall after Trump tells OPEC to increase output
Oil prices slid on Thursday after US President Donald Trump urged the Organisation of the Petroleum Exporting Countries (OPEC) to ramp up crude production to bring the cost of the commodity down.
Oil prices fell on Thursday after US President Donald Trump told OPEC to increase crude production to lower the cost of the commodity.
International Brent crude futures fell by $1.14 to $66.69 a barrel by lunchtime, while US West Texas Intermediate (WTI) futures slide $1.02 to $58.39 a barrel.
Trump calls on OPEC to increase production
‘Very important that OPEC increase the flow of Oil. World Markets are fragile, price of Oil getting too high. Thank you!’ Trump wrote in a post on Twitter.
Oil prices have come under significant pressure this week, with an earlier slide driven by a recent report by the American Petroleum Institute, which showed that US crude inventories had risen by 1.9 million barrels last week, exceeding analysts’ expectations who predicted a 1.2 million barrel drop.
Venezuela disruption fails to offset US stockpile data
Even major disruptions at Venezuela’s main oil export port of Jose could not offset the impact of rising US crude stockpiles, with the site’s four crude upgraders unable to resume operations after suffering a major power outage earlier this week.
To make matters worse, crude exports out of Venezuela fell significantly after US authorities opted to ban American refineries from purchasing the country’s oil.
US sanctions imposed on Venezuela and Iran, along with supply cuts agreed by the Organisation of the Petroleum Exporting Countries (OPEC) and other major producers in January have helped oil prices find their footing this year, rising more than 25% since the beginning of 2019.
However, oil prices are expected to rise towards $75 levels in the coming months as global stockpiles steadily decline.
‘Enjoy it whilst it lasts. The upcoming six months will bring relatively healthy demand for OPEC oil,’ PVM’s Tamas Varga said in a note.
‘If the unplanned supply cuts remain in place... oil prices should edge towards $75/bbl ...in coming months as global inventories will draw.’
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.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement on 10 April 2019.
- 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
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.