The US Energy Information Administration (EIA) said that oil prices were generally lower in 2019 than in 2018. The international benchmark Brent averaged $64/barrelin 2019, while WTI averaged $57/barrel last year. Both prices were $7/barrel lower compared to their respective average prices in 2018.
Brent and WTI fluctuated in a relatively narrow price ranges throughout 2019. Brent moved within range of $20/barrel last year, the narrowest since 2003, from an annual daily low of $55/barrel in January to a daily high of $75/barrel in April. Meanwhile, WTI fluctuated between a range of $47/barrel to $66/barrel.
Despite the relatively narrow fluctuation, both crudes experienced their sharpest single-day price hike since 2008 last year. Brent and WTI front-month futures prices jumped by $9/barrel and $8/barrel, respectively, on September 16 following attacks on Saudi Arabia’s key oil facilities that knocked the kingdom’s output by 5.7 million bpd. Prices hike was short-lived thanks to Saudi Arabia’s quick response in restoring its production level.
Rising petroleum production in the US weighed down on prices throughout 2019. The US production growth capped supporting fundamentals provided by attacks on Saudi Arabia’s oil infrastructures, OPEC supply cut, and US sanctions on Iran and Venezuela.
Output in other major oil producers such as Saudi Arabia, Iran, and Venezuela decreased in 2019. EIA estimates OPEC production level averaged 29.8 million bpd last year, declining from 32.0 million bpd in 2018. To avoid further supply glut, OPEC and its ten allies on December 7, agreed to deepen supply cut to 1.7 million bpd which will run until March.
Tags: AlwaysFreeRegister,Crude Oil,EN ALWAYSFREEREGISTER,Energy & Feedstocks,English,World Energy Information Administration (EIA),Oil Market,oil pricesJanuary 8, 2020 3:59 PM