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The cost of oil has increased

12 March 2019

The cost of oil has increased

The current state of oil prices today increased due to the decrease in the rate of development in the United States of America, and a review of the Minister of Saudi Arabia regarding the cancellation of the supply cuts. In addition, this contributed to fears on the US employment data. It is assumed that they contribute to the slowdown in economic growth of the Asian and European regions, although in the US it remains stable and healthy. However, a continued decrease in supply from the OPEC has played a key role in the current situation.

In the beginning of the year, it was decided to reduce the flow of crude oil by more than 1 million daily value, so as to maintain prices at the same level. In mid-April and late June, meetings will be held, which will discuss a more effective procurement policy. Weekly report of Baker Hughes Corporation reports that drilling rigs were again reduced in number of 9 units, and their actual number is now 834. Despite this, and the less active the growth of the industry in the foreseeable future, as a natural development of events, analysts predict a rise in production above the level of 13 million barrels per day.