Oil keeps climbing up
On Friday, crude prices, when a top energy monitor informed that prices might have bottomed following hopes that decreasing supply would greatly assist in alleviating the world crude oversupply.
According to the International Energy Agency, prices have been mostly supported by falling supply all over the world, but also added that the recent leap can hardly be considered substantial, because the demand outlook can offer nothing, but uncertainty. Since last month’s lows crude prices have rebounded by approximately 40%. Experts aren’t sure whether the oil market is going to achieve the long-awaited balance in 2017 or not.
In London, Brent crude reached $40.98 a barrel, thus showing a 2.4% surge. As for New York trading session, crude futures here climbed up to $38.90, or +2,8%.
The IEA foresees that this year American oil output will drop by 530,000 barrels a day and other suppliers, including Colombia and Brazil will most likely face huge losses. By the way, a recent return of Iran to the world market appeared to be less dramatic than expected, as last month this country’s oil production grew 220,000 barrels a day.