The prices of crude oil continue to steadily increase. This price recovery is the result from OPEC member states agreeing to cut back on production at their most recent meeting, similarly to their initial agreement a few years ago when the market was oversupplied. Right now OPEC’s efforts to decrease production directly clash with the ever-increasing reserves in the United States, but the decrease in supply is aided by sanctions against Iran and Venezuela, also imposed by the United States.
Today the WTI has been trading around $55.89, while the Brent crude is up at $65.48.
Donald Trump has repeatedly criticized OPEC+ for the artificial supply cuts and has said that the global markets would respond better to lower oil prices right now. This is due to the fact that there is a global economic slowdown currently and this is causing lower demand for fuel.
We expect that OPEC will maintain their current course for the foreseeable future, so prices are expected to recover.
