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Oil trade on the decline

19 March 2019

Oil trade on the decline

The economic downturn at the international level, provoked strong concerns about consumer use of petroleum products, the prices of which as of today continue to fall. Nevertheless, the market is still supported by the supply reduction by OPEC during the two-month weakening of the production of the United States of America.

Despite the strong decline, on the background of the new sanctions against Iran and Venezuela the price jumped by about a quarter, which drew the attention and approval of countries not belonging to the world organization of exporters, for example, Russia cut production by more than one million barrels daily intake, however, given the enormous reserves, this measure will be relevant only until the end of June.

In addition, a decisive voice in the question of the balance between demand and supply will remain for the Americans, who last year were able to increase production by 2 million barrels, particularly after the development of shale formations. This all happened despite the fact that last year there was a significant reduction of drilling rigs, the number of which reached a record minimum number in 833 stations.