Oil Prices Are Set To Go Up 50% Worldwide

Oil prices have soared above $64 a barrel due to the chaos in Venezuela,Iran and US sanctions and the surge of violence in Libya.This has amplifies the supply constraints imposed by the cartel’s kingpin creating a crisis in the oil sector.

Saudi Arabia has slashed production as well as exports to the United States in a bid to engineer higher prices and balance its budget.Brent crude, the global benchmark, is already above $71 a barrel for the first time since mid-November.

 Clashes in Libya in recent days raise the risk that the war-torn country’s 1.3 million barrels of daily oil production will beat stake. Libya’s UN-backed government said it repelled an attack by rebels over the weekend after briefly losing control of Tripoli’s airport.Libya’s oil output was sidelined for years due to a bloody civil war. But production has been on the rise again in recent months. If Libya were to go out, oil prices could easily spike $5 to $10 from current levels,” said Ben Cook, portfolio manager at BP Capital Advisors.
Meanwhile Venezuela has been hit by the Trump administration’s sanctions on state oil company PDVSA. The United States imported zero barrels of crude from Venezuela during the final three weeks of March, according to US government statistics. It’s a sharp decline from weekly imports of around 600,000 barrels per day before the sanctions were announced in late January.The United States has never gone a full month without importing oil from Venezuela since the government began tracking this metric in 1973.Venezuela’s oil output was further derailed by mass blackouts in the country, which has added to the nation’s humanitarian crisis.
Meanwhile, oil investors are watching for the Trump administration to drop clues on whether it will extend waivers that have allowed countries to keep buying oil from Iran. The waivers were announced last summer and contributed to a supply glut that sent crude prices crashing into a bear market.

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