The Asian session of trading on the global commodity market was very active, which was provoked by the publication of a report by the International Energy Agency (IEA), which shows signs of restricting oil supplies. As a result, oil prices went up sharply, actively bargaining throughout the session. Experts believe that this trend will continue at least until the middle of next week.

At the time of this writing, futures contracts for WTI crude oil added 0.75% or 0.48 p., reaching $64.06 a barrel. At the same time, the futures contract for Brent crude oil rose by 0.62% or 0.44 p., entrenched at $71.29 a barrel.

WTI Crude Oil (Nymex)

Brent Crude (ICE)

The latest report of the International Energy Agency (IEA) notes that the main reasons for the decline in supply were the OPEC+11 pact and the resumption of US sanctions on trade and financial transactions with Venezuela and Iran. In the end, such actions were the most solid basis for the growth of oil prices in the current year. As a percentage, this growth reached 32.7%, compared to the same period last year.

Statistics show that over the past month, oil production in Venezuela fell to 960,000 barrels per day. This is half a million barrels less than in February 2019. In general, the members of the OPEC+11 this year have already reduced production volumes by 1.2 million barrels per day.

Further prospects of this agreement will become known not earlier than the end of June, when the planned conference will take place, at which the next steps of the world's largest oil producers will be discussed. Saudi Arabia, Russia and Venezuela do not give up their intention to achieve an increase in oil prices at the 2013 level. The budgets of these countries are formed largely from the money coming from the export of raw materials.

Analysts are of the opinion that oil prices also strongly depend on the global demand for raw materials. And here lies the greatest uncertainty, since the prospects for global economic growth are unclear, especially with regard to the further growth of the Chinese economy.

Experts of the International Energy Agency (IEA) predict that the world level of oil demand in 2019 will be no more than 1.4 million barrels per day, but with one essential proviso: given the current state of the world economy. If recession begins, all the efforts of OPEC+11 will be in vain.

Find out first how the dynamics of oil prices will change! Get accurate forecasts from analysts of companies from Top Binary Options Brokers, use reliable robots, trade using proven strategies from professional traders!