Today we observe a small decrease in the prices of crude oil. However, analysts are optimistic that this is just a routine correction and the price will stabilize and continue to move upwards. The main driver for price increases has been the OPEC agreement to curb back production and exports aggressively, in light of the lower demand in 2018 and the constantly rising oil reserves in the United States, their chief competitor.
Brent crude today is trading near $66.08, while the WTI is at $55.89 per barrel. Despite these prices being lower than some of the peaks reached in 2018, the last few weeks we have seen a calm and steady growth in prices which has been the most consistent one in the past eight years.
Another factor in favor of rising oil prices are the sanctions on oil exports from Iran and Venezuela. Sanctions on Iran kicked in last year but many countries were given extra time to trade without feeling their effects, so the actual impact of that decision is beginning to become more pronounced just now. Venezuela was recently slapped with sanctions from the United States on account of their political crisis, with countries trying to pressure Maduro to resign.
