Oil is traded in positive territory this Friday, at the end of a turbulent week, in which Saudi Arabia's weakest dollar and declarations of support for production cuts have been against the growing commodity production in the United States.
At 10h24 (Brasilia), WTI Oil for April rose 0.10%, at US $61.23 the barrel, in the New York Mercantile Exchange (Nymex), and Brent for April had high 0.25%, at us $64.49 the barrel, on ICE.
Oil found support earlier this week after important producers, such as Saudi Arabia, signal a commitment to the agreement led by the Organization of Petroleum Exporting Countries (OPEC) to contain the global offer. On the other hand, the growing production of the USA imposes caution. The International Energy Agency (IEA) said that American production could reach 11 million barrels per day in 2019 and that OPEC production could increase to exceed demand in 2018, which would damage the market rebalancing seen over the last year.
Analysts watch closely what will happen to see if the growing appetite for oil absorbs production or if there is excess oil in the markets. They remember that economic and social problems in Venezuela have helped Opec to secure the limits to production. American sanctions that could be imposed against Caracas and its oil industry can undermine this production even further. S&P Global Platts estimates that Venezuela produced 1,640,000 barrels a day last month.
Director of commodity strategy at RBC Capital Markets, Helima Croft stated that the U.S. uses oil and energy to "change political dynamics in Venezuela". "We're so focused on shale that we don't see that other producers have lost market share," he noted. Source.
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