Oil Prices Are Too High

Oil Prices Are Too High

Oil prices edged higher on Wednesday, turning positive after USA government data showed a bigger weekly draw than expected in domestic crude inventories along with unexpected declines in gasoline and distillate stocks.

"You can not place sanctions on two OPEC founder members and still blame OPEC for oil price volatility", he said in a statement to Reuters, referring to itself and Venezuela.

Since early 2017, OPEC and other oil-producing countries have agreed to reduce supply in a bid to bolster oil prices. Brent crude was trading at $75.83 per barrel, while the US WTI was valued at $66.31.

Although Saudi Arabia has benefited from oil's rally over the last two years, the government relies on a strong security relationship with the USA, giving Washington some influence in the debate over OPEC policy.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers, including Russian Federation, started withholding output in 2017 to reduce a global supply overhang and prices have risen by around 60 percent over the a year ago.

Some countries have already increased production, and analysts have said the outlook for the oil market for the rest of 2018 is uncertain as OPEC countries prepare to meet June 22-23 in Vienna to discuss output.

Lowest-Ranked Teams At The 2018 World Cup
At Russia , Brazil have a clear ambition and goal, to advance to the latter stages of the tournament and even try to win it. Known for his pace and attacking prowess, Marcelo makes the Brazilian left side a big threat to oppositions.

Total OECD commercial oil stocks-OPEC's current gauge of the oil market rebalancing-were 26 million barrels below the latest five-year average, as per preliminary data for April. Russia's production was 11.1 million barrels a day in June, exceeding its quota, according to sources familiar with the matter.

But the International Energy Agency said it believes the prices are unlikely to rise as sharply as they have in the past few months, CNBC reported.

The IEA said it expects global oil demand to grow 1.4 million bpd. this year, and in 2019, and will top 100 million bpd.in the fourth quarter of 2018.

In the letter, the senators said a run-up in oil prices is "effectively a tax on every American family's discretionary budget" since the price of oil directly affects the price of gasoline.

Fund manager Pierre Andurand at Andurand Capital is bullish.

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