Multiple Factors Affecting Oil Supply And Prices – 27 August, 2018

A risk of disruption in oil supply from multiple places is causing the market to tighten. Countries such as Venezuela and Iran, along with OPEC, have all had a major affect on both the prices and global oil supply, with Brent Crude futures rising 0.2 percent and 16 cents per barrel to $76.37 per barrel. Similarly, West Texas Intermediate crude futures were up 0.1 percent and 9 cents per barrel to $68.96 per barrel. Over the last two years, supplies from Venezuela have cut in half down to just 1 million bpd due to an economic crisis. OPEC and Russia cut their July output by 9 percent more than originally planned, and U.S. sanction on Iran and U.S.-China trade tensions have all had an impact on the oil market.