Oil: US Sanctions against Iran and Venezuela to prop up the prices

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The price of oil Tuesday 12 February 14.33 MSK increased by 1.9% to 62.67 a dollar per barrel.
The market of “black gold” receives support on the news about the efforts of OPEC+ reduction of production. In particular, in January Saudi Arabia had cut oil production by 400 thousand barrels per day to 10.24 million barrels.
In addition, the existing US sanctions against Iran and Venezuela continue to limit the supply of “black gold” on the world market.
Meanwhile, British oil company BP begins in Egypt the second stage of development gas project in the Delta West Nile (West Nile Delta). Now in the fields of project Giza and Fayoum in total produces about 400 million cubic feet of gas per day. BP intends in the second phase to increase production to 700 million cubic feet.
The third phase is scheduled for late 2019, will be launched on the Raven field.
After the three phases of aggregate extraction in the project (Taurus, Libra, Giza, Fayoum and Raven) will be almost 1.4 billion cubic feet per day, equivalent to approximately 20% of total produced gas in Egypt. All from deposits in the gas will be consumed the national gas network of Egypt.
The pair Euro-dollar remains under pressure and is fixed below the level of 1.13 – the lows from mid-November last year. Some support for the dollar on forex have news that the representatives of Democrats and Republicans in the U.S. Congress on Tuesday agreed in General terms on the question of protection of American borders in the southern United States. This can help you to avoid another suspension of work of Federal agencies (“shutdown”) after discussing this issue on 15 February. Previously, Donald trump demanded the allocation of billions of dollars to build a wall with Mexico.
To 14.32 GMT the Euro is almost unchanged from the start of trading on the last fixing and was 1,1275 dollar.
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Ivan Marchena,
Analyst
GK Forex Club