Oil Prices Will Rise To $ 70 During The First Quarter Of 2019 After OPEC’s Last Decision

BAGHDAD, The financial expert Safwan Qusay expected oil prices to rise at $ 70 in the first quarter of 2019, stressing that OPEC’s recent decision to reduce production is a good decision for oil prices.

He said in a statement to the National Iraqi News Agency (NINA) “the absorption of surplus oil supply in the markets through the decision to reduce production by (OPEC) and its allies, especially Russia, will push oil prices to increase and reach the fair price between producers and consumers, which is $ 70 during the first quarter of 2019 “.

“The end of the period of exceptions on the possibility of buying Iranian oil and the continued tension and sanctions on the Islamic Republic of Iran will contribute to increase the price, and the military tensions on the Russian border may also contribute to disrupting Russian supplies, which could contribute to a sharp increase in prices”

“The current OPEC decision will contribute to controlling prices, especially as the major producers, Saudi Arabia, Iraq and Russia, want a price of at least $ 70 in 2019,” he said.

He added: “The size of the agreed reduction is 1.2 million barrels start at the beginning of 2019, although the Kingdom of Saudi Arabia has already begun to reduce the volume of its production as of this month.”

It is mentioned that OPEC and its allies agreed on production cuts of 1.2 million bpd starting next year, a move that will be reviewed at a meeting in April.

That figure is higher than the 1 million barrels per day predicted by the market, despite pressure from US President Donald Trump to cut crude prices.

Oil Minister Thamer Ghadhban said after OPEC concluded two days of talks in Vienna that the Organization would cut production by 800,000 barrels per day starting in January, while its allies would contribute further cuts of 400,000 barrels per day.

Russia has pledged to cut production by 228,000 bpd from October’s 11.4 million bpd, although it said the cuts would be gradual and take place over a few months.

Brent crude ended the day at $ 1.61, or 2.7 percent, at $ 61.67 a barrel.

Source: National Iraqi News Agency