Brent crude oil has successfully got over the level of $71/b and bulls managed to consolidate over this mark. Oil has been growing for 6 weeks in a row, the quotes have returned to the values of November 2018. And some factors indicate that the uptrend will continue.
Tensions in another oil-producing country, Libya, flared again. This country’s oil reserves are larger than in any other African country, and it’s a major exporter of petroleum products to Europe. Civil war has not stopped there for many years, but recently there has been escalation of hostilities, including airstrikes. More than 50 people were killed in clashes. The United States is currently choosing the position of an observant, but does not exclude a scenario of a new intervention.
OPEC + postponed its April Monitoring Committee Meeting to May due to several factors. First, countries have not yet reduced stocks to a 5-year average level. Secondly, Venezuela and Iran are under sanctions and the way for lifting or weakening them has not been seen yet. Moreover, D. Trump designated the Iran’s Islamic Revolutionary Guard Corps (IRGC) as a terrorist organization, which is quite a precedent. Venezuela, Iran and Libya are the only member countries exempt from the cartel’s production-cut deal. Saudi Oil Minister believes that the May meeting will be the key one in terms of fundamental factors and a consensus view on further production cuts.