Venezuela’s falling oil supply is a major ‘challenge’ to global energy markets

Crude oil

The West Texas Intermediate for April delivery rose 0.35 USA dollar to settle at 58.61 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery decreased 0.32 dollar to close at 67.23 dollars a barrel on the London ICE Futures Exchange.

Along with this, the cuts in pumping implemented by the Organization of Petroleum Exporting Countries (OPEC) and some large producers outside that group, as well as the increase in the crude extraction in the United States, influenced the prices of the so-called black gold.

Speaking about Azerbaijan oil production indicators Azerbaijan exported 5.78 million tons of oil in January-February 2019, which is 58 percent more than in two months of past year, Trend reports with reference to the State Customs Committee of the country on Friday.

"The relentless pace continues into 2019, when USA supply is expected to expand by 1.5 million bpd and account for 83 percent of non-OPEC growth of 1.8 million bpd", it said. Opec sources have said an extension of the pact is the likely scenario. OPEC announced in December it would be cutting production by 1.2 million bpd in 2019 to help balance the market in the near term.

Investors will be watching to see if OPEC sticks to its production cut agreements and maintains its demand outlook in coming quarters. That amounts to 105 percent compliance with pledged cuts, according to a Reuters calculation, up from January's rate.

The OPEC decline in February comes after the cartels' production in January fell by 797,000 barrels per day to average almost 30.8 million barrels per day. Production in Iran and Libya, also exempt, was little changed.

While Friday put an end to crude's daily winning streak due to a return of fears that the global economy will weaken and American production is skyrocketing, USA oil ended the week 4.1 percent higher, and Brent was up 1.9 percent. "Total demand is projected to exceed 100 million barrels per day during the second half of 2019", the report said. That reflects a US supply growth rate of 1.8 million barrels a day (up 10.8%) year over year.

The instability in Venezuela and the growing evidence of a slowdown in United States shale have pushed prices up.

By 15:07 GMT, the crude Brent for the world benchmark was $ 67.22 a barrel, an increase of 55 cents or 0.82 percent over the previous closing. WTI hit a high of $58.48 a barrel on Wednesday, the highest since November 13.

Related news:

Hot News

isis-killer-beheading-video-story-top Study links drinking hot tea with elevated esophageal cancer risk
Mar 22, 2019 - 12:13
Dr Islami, from the American Cancer Society , said: "Many people enjoy drinking tea , coffee , or other hot beverages". However, with around 500,000 new cases of oesophageal cancer worldwide each year prevention is key.

isis-killer-beheading-video-story-top England boss Southgate says Rice's social media post won't affect team standing
Mar 22, 2019 - 11:58
Rice also sought to calm accusations that he should not represent England , saying that his voice proves his Englishness. I've played there in the youth setup, but I had to make a decision that was best for me.

isis-killer-beheading-video-story-top Boeing 'finalising' software update & pilot training for 737 Max
Mar 22, 2019 - 11:12
Jean-Paul Troadec, the former head of France's aviation accident investigation bureau, told CNN that he saw flaws in the system. The pilot was granted permission to return to ground around the same time the flight disappeared from radar.

isis-killer-beheading-video-story-top Pogba: Real Madrid are a dream club, Zidane is a dream coach
Mar 21, 2019 - 08:45
If we had been winning and the results had been more positive, the manager would have stayed", Pogba said with a smile. Nearly everybody at United is on duty.

isis-killer-beheading-video-story-top Stargazers to witness last supermoon for 2019 tonight
Mar 21, 2019 - 08:39
The third and final super moon of 2019 coincides with the first day of spring for the first time in nearly 20 years. The moon will be at it's closest point to Earth will appear bigger and brighter in the sky until Friday.

isis-killer-beheading-video-story-top Christchurch mosque shootings: Heroic arrest - what suspect told police
Mar 21, 2019 - 07:58
She added: "And to others I implore you: speak the names of those who were lost rather than the name of the man who took them". Ardern said an amnesty period will be put in place allowing gun owners to hand their assault rifles and MSSAs into police.

isis-killer-beheading-video-story-top Bianca Andreescu's ranking to skyrocket after Indian Wells
Mar 21, 2019 - 07:58
Momentum swung in Andreescu's direction when she broke back to level the set at 3-3 and held serve to love in the next game. When she finally converted her fourth match point she kissed the sun-baked court and flopped spread-eagled on her back.

isis-killer-beheading-video-story-top Pilots of doomed Lion Air flight 'scoured handbook in minutes before crash'
Mar 21, 2019 - 07:43
There have been no reports of maintenance issues with the Ethiopian Airlines plane before its crash. A crew that flew the same plane the evening before had the same problem with the plane's nose.

isis-killer-beheading-video-story-top NZ PM announces to broadcast 'Azaan' on national TV, radio on Friday
Mar 21, 2019 - 06:59
Melissa Hortman. "It is horrendous and while they've given us those assurances, ultimately the responsibility does sit with them". About 10 of them were in critical condition, including a 4-year-old girl.

isis-killer-beheading-video-story-top Packing the Supreme Court Will 'Never Happen'
Mar 20, 2019 - 08:49
The top court will decide the case in its next term, which begins in October and ends in June 2020. As is typical, the justices did not make any comment in agreeing to hear the case.

isis-killer-beheading-video-story-top Xiaomi Mi Mix 3 5G is not going to be too expensive
Mar 20, 2019 - 08:01
The phone with the name "Mi Mix3 5G" is one of the first devices to support the future of super-fast data radio. Additionally, Xiaomi comes packed with a 6.39 inch AMOLED display with the resolution of 2340 x 1080p pixels.

isis-killer-beheading-video-story-top Jair Bolsonaro lauds ‘traditional family lifestyles’ during White House visit
Mar 20, 2019 - 07:48
The United States is Brazil's second biggest trade partner after China . "I'm very proud to hear the president use the term 'fake news'".

isis-killer-beheading-video-story-top MLB's Mike Trout nears record-shattering $432 million deal
Mar 20, 2019 - 07:27
The team mentioned most consistently was the Philadelphia Phillies, the team that just signed Bryce Harper to his own mega-deal . That deal is a 10-year extension that adds onto the remaining two years of his current six-year/$144.5 million deal.

isis-killer-beheading-video-story-top LeBron James Defines Lakers As 'Catering To Players, Everything Else Comes Secondary'
Mar 20, 2019 - 06:42
The Lakers led by 11 with under 3 ½ minutes remaining before the Knicks charged back largely due to their defense against James. Dejected Lakers coach Luke Walton , whose job is reportedly in peril, praised the Knicks for digging out an improbable win.

isis-killer-beheading-video-story-top RCom scraps telecom asset sale to Reliance Jio
Mar 19, 2019 - 12:44
His companies suffered a setback last week after a lower court refused to free up tax refunds withheld by lenders. Anil Ambani's Reliance Com pays Rs 460 crore to Ericsson as per the Supreme Court order.