Crude Oil Enjoys Price Gains after G7 Summit
By Daisy Joseph
The price of crude oil has been above $50 per barrel in the past two weeks, as countries are trying to curb the production. The oil prices increased especially after USA’s strong action against Syria. During the G7 summit, Rex Tillerson, Secretary of State, USA said that the country won’t tolerate crimes against innocent people. The supply flow could be hindered as Libya keeps shutting down and restarting its production plants, owing to political and technical reasons.
The recent outrage at the biggest oil field in Libya, combined with Russia’s interest to extend OPEC production cut deals help to push the oil prices higher. For the fifth day, the oil prices rose again in the New York market. Oil has gained 3.2% in the last week. Alexander Novak, Energy Minister of Russia has commented that the energy department is discussing the possibility of extending OPEC’s six-month deal.
Investors predict that the supply will reduce, as the OPEC deal may be extended and production will reduce in Libya due to outrages. The West Texas Intermediate gained 1.6% while the Brunt crude futures gained 1.3%. Experts suggest that crude supplies would drop soon and the increased demand could help the oil price to increase more. The oil refineries in the USA could increase their production to meet the surge in demand in the summer. The crude exports to Asian countries have also increased. Since February, the inventories have reduced by 8% to reach 239.1 million barrels.