The price of oil is steadily going down. There are currently no significant disruptions in supply expected and production is rising overall, which is bringing down demand and lower the prices. Moreover, prices are also decreasing amid worries associated with the trade dispute between the United States and China.
Both the Brent and the light crude shed more than 4% during yesterday’s trading session. Today we find the Brent near $71.65, and the CL at $67.91.
OPEC and Russia have increased their oil production levels ever since their last summit where they agreed it is safe to compensate for possible production gaps left by Iran and Venezuela. Moreover, Libya (which previously experienced a dispute between multiple organizations regarding its oil) has also resumed oil exports. This steady supply is meeting demand, and the price of oil has dropped in total by 10% for the past week. The United States also continue to increase their production of shale oil.
