Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

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Oil steady on OPEC led cuts, rising demand

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Oil prices held their own today on the bank of strong demand, looming sanctions from US against leading crude exported Iran and OPEC led cuts.

Brent crude futures were at $79.48 per barrel at 0041 GMT, up 5 cents from their last close. Brent broke through $80 for the first time since November 2014 on Thursday.

U.S. West Texas Intermediate (WTI) crude futures were at $71.55 a barrel, up 6 cents from their last settlement.

Crude prices have picked up significantly, as voluntary participation from countries regarding the OPEC led has changed the market dynamics. Markets which were once flooded with crude stockpiles resulted in a glut which has taken more than three years to subside.

Global inventories are approaching long-run averages, suggesting that the coordinated OPEC/non-OPEC supply cuts have been successful. At $80 per barrel, Asia's thirst for oil costs the region a whopping $1 trillion a year, more than twice what it was in 2015/2016, the two years prior to the OPEC-cuts which started in 2017.

Posted on: 2018-05-18T11:16:00+05:00