Oil Price Briefly Reaches $70 as Buoyant Global Economy Bolsters Demand
- 6 years ago
Oil Price Briefly Reaches $70 as Buoyant Global Economy Bolsters Demand
Both countries are major suppliers of crude — Iraq produces 4.5 million barrels of oil,
and Venezuela adds around 1.8 million barrels — and any disruptions there could have a significant impact on global markets.
The International Energy Agency, in an Oil Market Report published in December, noted
that new supplies coming onto the market, particularly from the United States, might still exceed growth in demand in the first half of the year.
PRICE OF BRENT CRUDE OIL $120 a barrel WEEKLY RECENT PEAK 6/20/14 $115 100 80 1/12/18 $70 60 40 20 0 ’14 ’15 ’16 ’17 ’18 2014 Slow global economic growth
and unexpected production increases in Libya and Iraq sent oil prices down.
Among the shifts: OPEC has taken a more active role in managing global energy markets, with Russia — which is not
a member — unofficially replacing weakened or uncooperative cartel members like Iran, Nigeria and Venezuela.
2015 By the end of the year, prices hit 11-year lows because of a glut of crude on world markets, and the approval of a United Nations climate accord
that aimed to reduce the world’s reliance on oil and other carbon-emitting fuels.
They briefly passed $70 a barrel more than once in the last week — the first time the per-barrel price has reached $70 since December 2014.
Both countries are major suppliers of crude — Iraq produces 4.5 million barrels of oil,
and Venezuela adds around 1.8 million barrels — and any disruptions there could have a significant impact on global markets.
The International Energy Agency, in an Oil Market Report published in December, noted
that new supplies coming onto the market, particularly from the United States, might still exceed growth in demand in the first half of the year.
PRICE OF BRENT CRUDE OIL $120 a barrel WEEKLY RECENT PEAK 6/20/14 $115 100 80 1/12/18 $70 60 40 20 0 ’14 ’15 ’16 ’17 ’18 2014 Slow global economic growth
and unexpected production increases in Libya and Iraq sent oil prices down.
Among the shifts: OPEC has taken a more active role in managing global energy markets, with Russia — which is not
a member — unofficially replacing weakened or uncooperative cartel members like Iran, Nigeria and Venezuela.
2015 By the end of the year, prices hit 11-year lows because of a glut of crude on world markets, and the approval of a United Nations climate accord
that aimed to reduce the world’s reliance on oil and other carbon-emitting fuels.
They briefly passed $70 a barrel more than once in the last week — the first time the per-barrel price has reached $70 since December 2014.